Cryptocurrency trading firm FTX Trading Ltd. has received bankruptcy court approval to initiate the sale of its stakes in digital trusts managed by Grayscale Investments, a move aimed at raising funds to settle creditors owed substantial amounts.
Court documents reveal that FTX intends to execute the sale in a manner that optimizes value and minimizes disruption to the market for the digital investments.
Grayscale, known for selling investments linked to various digital currencies, structured trusts where buyers received shares rather than holding the actual currencies.
As of last month, FTX’s stakes in these trusts were valued at approximately $744 million, according to information presented in court papers.
Facing bankruptcy allegations last year, FTX has been diligently working with its advisers to identify assets and navigate a complex network of debts owed to various creditors, including those who deposited cash and cryptocurrency on the trading platform.
The recovery efforts have yielded around $7 billion in assets, including $3.4 billion in cryptocurrencies, as reported in court documents.
FTX’s move to sell its Grayscale stakes aligns with its commitment to settling outstanding debts and ensuring a fair resolution for its creditors.
The approval from the bankruptcy court marks a significant step in the ongoing restructuring process.
The case, filed under FTX Trading Ltd., docket number 22-11068, falls under the jurisdiction of the U.S. Bankruptcy Court for the District of Delaware.
