The Delaware bankruptcy court has given a green flag to FTX for allowing the sale of its trust assets worth over $873 million to pay back creditors.
In the November 29 filing, the bankruptcy court referred to the total trust assets worth $744 million as per their October 25 market value. The assets, however, are now worth approximately $873 million as their value has increased over time.Â
The assets will be sourced from FTX’s stakes in multiple trusts issued by Grayscale Investments which is currently valued at $807 million and another $66 million worth of assets from the custody service provider Bitwise.
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The court filing states that the selling of trust assets must be done through an Investment Advisor and all invoices will need to be provided to the court on a monthly basis.
The approval comes as FTX creditors filed a motion seeking the selling of FTX assets including Grayscale trusts – GBTC, ETHE, ETCG, LTCN, GDLC – and Bitwise 10 Crypto Index Fund. Out of all, Grayscale Bitcoin Trust (GBTC) is most valued at $691 million as per its current market value.
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