Bankruptcy Court Says FTX Debtors Can Start Selling Assets Including Grayscale Units

A Delaware bankruptcy court said Wednesday that FTX Trading and affiliated debtors can start selling trust assets that include interests in Grayscale and Bitwise funds worth $744 million.

Judge John Dorsey granted a motion filed in early November that sought permission to begin selling units in six crypto funds including Grayscale Bitcoin Trust, Grayscale Ethereum Trust, Bitwise 10 Crypto Index Fund, Grayscale Ethereum Classic Trust, Grayscale Litecoin Trust and Grayscale Digital Large Cap Trust. 

Grayscale's flagship bitcoin fund GBTC accounts for the largest portion of the assets, with nearly 22.3 million units worth $597 million. Grayscale's Ethereum Trust came in second place, with 6.3 million units worth $87 million. 

FTX filed for bankruptcy last November. The court-appointed CEO John Ray III found an "utter failure of corporate controls at every level of an organization," poor documentation of financial transactions by the company and massive misuse of the FTX users' funds by its affiliated trading firm Alameda Research, he testified in Congress last December.

The exchange's former CEO Sam Bankman-Fried was convicted of fraud on Nov. 2.

The bankruptcy claims have been trading at 60 to 65 cents on a dollar recently, with the price rising as asset recovery appeared to get closer, The Block reported earlier this month. 

Source: theblock.co