A bankruptcy court rules that debtors of the bankrupt crypto exchange FTX can start selling Grayscale and Bitwise shares worth hundreds of millions of dollars.
In a new filing, a Delaware court granted a motion filed earlier this month that would allow the debtors of FTX and its subsidiaries to begin selling $744 million worth of trust assets tied to crypto asset management firms Grayscale and Bitwise.
“At the request (the ‘Motion’) of FTX Trading Ltd. and its affiliated obligors and obligors in possession (collectively, the “Debtors”) to enter an order (this “Order”) involving (i) procedures for the sale or transfer of the Trust Assets and (ii) the sale or transfer of such trust assets in accordance with such procedures, free and clear of any liens.”
According to previous reports, the trust assets to be sold include five different Grayscale Trusts worth $691 million, as well as assets from a Bitwise-managed trust worth $53 million.
Earlier this month, on-chain data from blockchain tracker Lookonchain showed that FTX suddenly began shifting millions of dollars worth of digital assets Polygon (MATIC) and Avalanche (AVAX) to prominent crypto exchange platforms such as Coinbase and Binance.
FTX initially filed for bankruptcy last November and disgraced founder Sam Bankman-Fried was accused of mishandling billions of dollars in customer funds and defrauding investors. He was convicted earlier this year and sentenced to decades behind bars.
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Featured image: Shutterstock/Bushko Oleksandr