Latest! FTX Files Application To Sell 'Trust Funds' Worth $744 Million

<p>&nbsp;Based on court filings last Friday, November 3, bankrupt crypto exchange FTX has filed to sell a $744 million master trust fund. The file shows that some of the assets come from crypto asset manager Grayscale and trust service provider Bitwise.</p><p><br /></p><p>The assets under investigation consist of $691 million divided between five Grayscale Trust Funds and an additional $53 million under the management of Bitwise.</p><p><br /></p><p>The main purpose of selling these "trust assets" is to facilitate the preparation of assets for distribution to future creditors and to give FTX the flexibility to sell assets at a time deemed appropriate.</p><p><br /></p><p><br /></p><p>The note also notes that the act of combining the sale into an equitable process will help reduce costs and streamline the sale procedure by avoiding the need to file a separate application for each proposed sale.</p><p><br /></p><p>Creditors of FTX have applied for the sale of trust assets and sought approval from an investment adviser. Additionally, they have put forward a proposal to incorporate a pricing committee representing stakeholders as part of the sales process.</p><p><br /></p><p>This latest request from FTX's creditors is based on previous court approval for the liquidation of crypto assets totaling approximately $3.4 billion. The court has ordered the sale of these assets in increments of $50 million and $100 million to avoid disruptive market sales.</p><p><br /></p><p>On the other hand, last week, a US court sentenced Sam Bankman-Fried, the founder of FTX, for defrauding lenders and customers. A tentative sentencing date has been scheduled for March 28, 2024, with legal analysts predicting a potential prison sentence of between 15 and 20 years, although the maximum possible sentence is 115 years.</p>