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FTX Authorized to Sell Assets from Grayscale and Bitwise Holdings

FTX Authorized to Sell Assets from Grayscale and Bitwise Holdings

The bankrupcy court of Delaware has authorized FTX, the bankrupt crypto exchange, to sell approximately $873 million worth of trust assets.

These assets mainly come from investments in financial products issued by the giant Grayscale, with a total estimated amount of $807 million. The exchange also holds funds with Bitwise, a custody service provider, valued at $66 million.

Please note that this decision follows the ruling made by Judge John Dorsey, who granted permission to sell shares from six funds in response to a request filed by FTX debtors in early November. These funds include the Grayscale Bitcoin Trust, the Grayscale Ethereum Trust, and the Bitwise 10 Crypto Index Fund.

FTX currently holds over 22 million shares of Grayscale Bitcoin Trust (GBTC), worth $691 million, and 6.3 million shares of Grayscale Ethereum Trust (ETHE), valued at approximately $106 million.

Objective: Repay FTX Creditors

The collapse of Sam Bankman-Fried’s exchange in November 2022 caused significant damage. The FTX administrators, led by John J. Ray III, are now making efforts to recover as many assets as possible. So far, over $7 billion in assets have been recovered.

As you may have understood, this sale will help repay the creditors affected by the exchange’s downfall and represents a significant milestone in FTX’s restructuring process.

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