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.
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.
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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