The proceeds from the sale will go towards repaying creditors owed billions of dollars.
Bankrupt crypto exchange FTX has secured approval from the US bankruptcy court for the sale of crypto trust assets managed by Grayscale as part of efforts to make repayments to creditors.
US bankruptcy judge John Dorsey issued the order according to a court document filed on Nov. 29, 2023. The trust assets were worth $774 million in October.
According to Judge Dorsey, the FTX debtors are only permitted to sell the trust assets through an investment adviser, with the sale either conducted on crypto exchanges or over-the-counter (OTC).
The latest development is in line with FTX’s continuous efforts to recover funds from multiple sources to repay creditors who were affected by the firm’s collapse in November 2022.
As previously reported by CryptoPotato, FTX filed a lawsuit against former competitor Bybit, seeking over $950 million in crypto and cash. So far, the defunct cryptocurrency exchange has been able to recoup around $7 billion in assets.
While FTX is looking to revive the bankrupt exchange, there were recent reports that former FTX executives teamed up to launch a new platform called Backpack.
Sam Bankman-Fried, founder and ex-CEO of FTX, was convicted on multiple fraud and money laundering charges, facing a possible 115-year prison sentence. However, his lawyer is planning to fight the charges, claiming that Bankman-Fried “maintains his innocence.”
Anthonia is a fintech writer who has been involved in the crypto space since 2017 covering developments across regulations, adoption, and several other aspects of the Industry. When not neck-deep in the crypto news cycle, Anthonia spends her free time globetrotting and playing video games.