The U.S. Bankruptcy Court for the Delaware District has approved the FTX estate’s disposition of trust assets. This authorization, which was issued on November 29, 2023, makes it possible for the struggling cryptocurrency exchange to sell holdings in multiple funds, including Bitwise and Grayscale.
In addition, a plethora of claims have been assigned to new holders in the FTX Trading Ltd. record kept by restructuring business Kroll, as creditors choose to exchange their claims for instant cash.
1. Court Approval for FTX Estate's Asset Sale:
The U.S. Bankruptcy Court in Delaware has given its approval for the FTX estate to proceed with the sale of $870 million in Grayscale and Bitwise shares. This decision, dated November 29, 2023, is a pivotal development allowing the… pic.twitter.com/IcInN8VFtB
— Hub Station (@HubStation2023) November 30, 2023
FTX has been given permission to sell trust shares.
The court ruling, which was filed on November 29, 2023, allows these trust assets to be sold or transferred, enabling liquidation procedures to collect money for investors and creditors. The anticipated value of the FTX estate’s shares of Bitwise and Grayscale as of late October 2023 was $870 million.
The sales procedure will be carried out in conjunction with a court-approved financial advisor, according to recent court papers.
— CoinMinutes (@coinminutesnews) November 30, 2023
The strategy seeks to maximize returns by professionally marketing and selling the assets. The establishment of a price committee with representatives from several stakeholder groups emphasizes how strict the sales process is.
Trusted assets may be sold through over-the-counter (OTC) transactions or on trading platforms in accordance with the court’s mandate. Based on their assessments of “business judgment,” the creditors are allowed to keep the trust assets even though they have permission to sell.
Reassigned Claims Make Up Nearly 22% of the Most Recent 401 FTX Bankruptcy Docket Entries
In addition to the court’s ruling on the trusts, a significant number of claims that were transferred are evident in the FTX documents that Kroll managed.
The transfer of claims to outside organizations is represented by about 21.94% of the most recent 401 items on the bankruptcy court’s docket.
About 3.24% of these papers come from Cherokee Acquisition, a company that operates through the Claims Market platform and specializes in the acquisition of claims in class action and bankruptcy proceedings.
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