FTX Trading Ltd. won bankruptcy court approval to begin selling its stakes in digital trusts managed by crypto firm Grayscale Investments in order to raise money to repay creditors owed billions of dollars.
FTX plans to sell the assets in a way that maximizes the value and avoids disrupting the market for the digital investments, according to court documents. Grayscale sold investments linked to various digital currencies. The buyers didn’t hold the actual currencies, but instead got shares in trusts that Grayscale put together and managed.
FTX’s stakes in the trusts were worth about $744 million as of last month, the company said in court papers.
Since FTX filed for bankruptcy last year amid fraud allegations, the company’s advisers have been tracking down assets and trying to untangle a complex web of debts owed to various creditors, including customers who put cash and crypto on the trading platform.
FTX’s administrators have so far recovered about $7 billion in assets, including $3.4 billion of crypto, according to court documents.
The case is FTX Trading Ltd., 22-11068, U.S. Bankruptcy Court for the District of Delaware.
