FTX Given Green Light to Sell $873M Worth of Assets
A recent court ruling has granted FTX permission to
sell approximately $873 million worth of assets held in trust. Around $700
million of these assets are from Grayscale’s primary offering, the Grayscale
Bitcoin Trust (GBTC).
The approval, dated November 29 and issued by a
bankruptcy court in Delaware, enables the defunct crypto exchange to liquidate
holdings in trusts managed by Grayscale Investments and Bitwise. It marks a
significant step in repaying creditors impacted by the collapse of the
exchange.
The authorization was prompted by a motion filed by
FTX’s debtors on November 3, requesting the sale of six cryptocurrency trusts,
including the GBTC, Grayscale Ethereum Trust (ETHE),
and Bitwise 10 Crypto Index Fund.
FTX’s holdings in Grayscale, notably 22 million
units of GBTC and 6.3 million shares of ETHE comprise a substantial portion of
the assets marked for sale. The total amount of these assets is $691 million
and approximately $106 million, respectively.
The sale of the sanctioned assets involves FTX’s
stakes in various trusts issued by Grayscale Investments with a value of $807 million. Additionally, it includes a stake estimated at $66
million at Bitwise.
Grayscale Investments is renowned for selling
investments linked to various digital currencies. It structures and manages trusts
through which buyers acquire shares rather than hold cryptocurrencies.
FTX, under the leadership of John J. Ray III, has
been working to recuperate assets following the downfall of Sam Bankman-Fried’s
enterprise in November 2022. The efforts have led to the recovery of
approximately $7 billion in assets, with cryptocurrencies accounting for nearly
half of this amount.
Recently, the entities overseeing FTX’s bankruptcy
process filed a lawsuit targeting Bybit’s Mirana Corp. The lawsuit alleges that
Mirana Corp received a substantial sum of $935 million prior to
FTX’s bankruptcy filing. These transfers were allegedly intended to hinder,
delay, or defraud FTX.com’s present or future creditors.
FTX Targets Alleged Fraudulent Asset Transfers
The lawsuit asserts that the transfers to Mirana
Corp and Time Research, among other entities, should be classified as
fraudulent. FTX’s administrators argue that Mirana Corp received assets worth
$837,815,847, while Time Research was allocated $47,995,279.
FTX and its affiliates filed for bankruptcy
following management controversies, leading to legal actions against its Former
CEO, Sam Bankman-Fried, and other executives. Ray III took on the role of CEO to supervise the exchange’s transition and asset liquidation process.
The creditors of the crypto exchange are evaluating
the legality of recovering endorsement fees paid to athletes and sports clubs,
including prominent figures like Shaquille O’Neal, Naomi Osaka, David Ortiz,
Trevor Lawrence, and sports teams like the Golden State Warriors and Miami
Heat.
A recent court ruling has granted FTX permission to
sell approximately $873 million worth of assets held in trust. Around $700
million of these assets are from Grayscale’s primary offering, the Grayscale
Bitcoin Trust (GBTC).
The approval, dated November 29 and issued by a
bankruptcy court in Delaware, enables the defunct crypto exchange to liquidate
holdings in trusts managed by Grayscale Investments and Bitwise. It marks a
significant step in repaying creditors impacted by the collapse of the
exchange.
The authorization was prompted by a motion filed by
FTX’s debtors on November 3, requesting the sale of six cryptocurrency trusts,
including the GBTC, Grayscale Ethereum Trust (ETHE),
and Bitwise 10 Crypto Index Fund.
FTX’s holdings in Grayscale, notably 22 million
units of GBTC and 6.3 million shares of ETHE comprise a substantial portion of
the assets marked for sale. The total amount of these assets is $691 million
and approximately $106 million, respectively.
The sale of the sanctioned assets involves FTX’s
stakes in various trusts issued by Grayscale Investments with a value of $807 million. Additionally, it includes a stake estimated at $66
million at Bitwise.
Grayscale Investments is renowned for selling
investments linked to various digital currencies. It structures and manages trusts
through which buyers acquire shares rather than hold cryptocurrencies.
FTX, under the leadership of John J. Ray III, has
been working to recuperate assets following the downfall of Sam Bankman-Fried’s
enterprise in November 2022. The efforts have led to the recovery of
approximately $7 billion in assets, with cryptocurrencies accounting for nearly
half of this amount.
Recently, the entities overseeing FTX’s bankruptcy
process filed a lawsuit targeting Bybit’s Mirana Corp. The lawsuit alleges that
Mirana Corp received a substantial sum of $935 million prior to
FTX’s bankruptcy filing. These transfers were allegedly intended to hinder,
delay, or defraud FTX.com’s present or future creditors.
FTX Targets Alleged Fraudulent Asset Transfers
The lawsuit asserts that the transfers to Mirana
Corp and Time Research, among other entities, should be classified as
fraudulent. FTX’s administrators argue that Mirana Corp received assets worth
$837,815,847, while Time Research was allocated $47,995,279.
FTX and its affiliates filed for bankruptcy
following management controversies, leading to legal actions against its Former
CEO, Sam Bankman-Fried, and other executives. Ray III took on the role of CEO to supervise the exchange’s transition and asset liquidation process.
The creditors of the crypto exchange are evaluating
the legality of recovering endorsement fees paid to athletes and sports clubs,
including prominent figures like Shaquille O’Neal, Naomi Osaka, David Ortiz,
Trevor Lawrence, and sports teams like the Golden State Warriors and Miami
Heat.
Credit: Source link
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