FTX is free to sell its trust assets for more than $873 million in order to satisfy its debts, as approved by the Delaware bankruptcy court.
The bankruptcy court cited the entire trust assets valued at $744 million based on their market value on October 25 in the filing dated November 29. However, due to increases in value over time, the assets are currently valued at about $873 million.
The funds will come from two sources: $66 million in assets from Bitwise, a custody service provider, and FTX’s $807 million holding in various trusts issued by Grayscale Investments.
According to the court filing, all bills must be submitted to the court on a monthly basis and the sale of trust assets must be facilitated by an investment advisor.
The permission coincides with the filing of a motion by FTX creditors to sell off FTX assets, which include the Bitwise 10 Crypto Index Fund and the Grayscale trusts GBTC, ETHE, ETCG, LTCN, and GDLC. The most valuable of all is Grayscale Bitcoin Trust (GBTC), with a current market value of $691 million.
More From The Kangaroo Times