FTX’s legal team clarified that since FTX US hasn’t been restarted, Digital Custody holds little value for the estate, hence the sale.
The FTX debtors estate, led by CEO John Ray III, has filed to sell Digital Custody to CoinList for a significant markdown of $500,000, with financing provided by DC’s original CEO and seller, Terence Culver. FTX initially purchased Digital Custody for $10 million.
According to FTX’s legal filing, DC was acquired to offer custodial services for FTX US and LedgerX. However, DC was not fully integrated into the FTX ecosystem before former CEO Sam Bankman-Fried filed for bankruptcy in November 2022, three months after acquiring DC. FTX purchased the company in two $5 million transactions in December 2021 and August 2022.
FTX’s legal team also clarified that since FTX US hasn’t been restarted, Digital Custody holds little value for the estate. It states, “DCI is no longer useful to the Debtors’ business, given the Debtors’ sale of LedgerX and that it is unlikely for the Debtors to sell or restart FTX U.S..”
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Source: https://cointelegraph.com/news/ftx-plans-sale-of-digital-custody-inc-for-500k-in-bankruptcy-move