FTX Given Green Light to Sell $873M in Assets Managed by Grayscale, Bitwise

<p>A recent court ruling has granted FTX permission to
sell approximately $873 million worth of assets held in trust. Around $700
million of these assets are from Grayscale's primary offering, the Grayscale
Bitcoin Trust (GBTC). </p><p>The approval, dated November 29 and issued by a
bankruptcy court in Delaware, enables the defunct crypto exchange to liquidate
holdings in trusts managed by Grayscale Investments and Bitwise. It marks a
significant step in repaying creditors impacted by the collapse of the
exchange.</p><p>The authorization was prompted by a motion filed by
FTX's debtors on November 3, requesting the sale of six cryptocurrency trusts,
including the GBTC, Grayscale Ethereum Trust (ETHE),
and Bitwise 10 Crypto Index Fund. </p><p>FTX's Grayscale Trust Assets Cleared for Sale </p><p>FTX's holdings in Grayscale, notably 22 million
units of GBTC and 6.3 million shares of ETHE comprise a substantial portion of
the assets marked for sale. The total amount of these assets is $691 million
and approximately $106 million, respectively.</p><p>The sale of the sanctioned assets involves FTX's
stakes in various trusts issued by Grayscale Investments, which are valued at
$807 million. Additionally, it includes a stake valued at $66
million at Bitwise. </p><p>Grayscale Investments, renowned for selling
investments linked to various digital currencies, structures, and manages trusts
through which buyers acquire shares rather than holding cryptocurrencies.</p><p>FTX, under the leadership of John J. Ray III, has
been working to recuperate assets following the downfall of Sam Bankman-Fried's
enterprise in November 2022. The efforts have led to the recovery of
approximately $7 billion in assets, with <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/">cryptocurrencies</a> accounting for nearly
half of this amount.</p><p>Recently, the entities overseeing FTX's bankruptcy
process <a href="https://www.financemagnates.com/cryptocurrency/ftxs-bankruptcy-lawsuit-delving-into-the-935-million-transfer-scandal/" target="_blank" rel="follow">filed a lawsuit targeting Bybit's Mirana Corp</a>. The lawsuit alleges that
Mirana Corp received a substantial sum of $935 million in transfers prior to
FTX's bankruptcy filing. These transfers were allegedly intended to hinder,
delay, or defraud FTX.com's present or future creditors.</p><p>FTX Targets Alleged Fraudulent Asset Transfers</p><p>The lawsuit asserts that the transfers to Mirana
Corp and Time Research, among other entities, should be classified as
fraudulent. FTX's administrators argue that Mirana Corp received assets worth
$837,815,847, while Time Research was allocated $47,995,279. </p><p>FTX and its <a href="https://www.financemagnates.com/terms/a/affiliates/">affiliates</a> filed for bankruptcy
following management controversies, leading to legal actions against its Former
CEO, Sam Bankman-Fried, and other executives. Ray assumed the role of the CEO
to oversee the exchange's transition and <a href="https://www.financemagnates.com/cryptocurrency/news/ftx-granted-permission-to-sell-34b-in-crypto-holdings-by-us-court/" target="_blank" rel="follow">asset liquidation process</a>.</p><p>The creditors of the crypto exchange are evaluating
the legality of <a href="https://www.financemagnates.com/cryptocurrency/ftx-seeks-payments-recovery-from-top-athletes-and-clubs/" target="_blank" rel="follow">recovering endorsement fees</a> paid to athletes and sports clubs,
including prominent figures like Shaquille O'Neal, Naomi Osaka, David Ortiz,
Trevor Lawrence, and sports teams like the Golden State Warriors and Miami
Heat. </p>

This article was written by Jared Kirui at www.financemagnates.com.