In a significant development, the beleaguered cryptocurrency exchange FTX has received authorization to liquidate approximately $873 million in trust assets. The move, as disclosed in a filing on November 29 within a Delaware bankruptcy court, aims to provide restitution to creditors affected by the exchange’s collapse in 2022.
The assets earmarked for liquidation comprise FTX’s holdings in trusts managed by crypto asset manager Grayscale Investments, with an estimated value of $807 million, and custody service provider Bitwise, valued at $66 million.
The approval for the sale of trust assets was granted to FTX Trading, as detailed in the court filing, with the funds generated intended to offset the losses incurred by creditors due to the exchange’s previous insolvency.
According to the filing, FTX’s stakes in Grayscale and Bitwise were appraised at $744 million as of October 25. However, the value has appreciated since then.
This development marks a critical step in FTX’s ongoing efforts to address its financial obligations and marks a significant chapter in the aftermath of the exchange’s 2022 collapse.
