FTX Creditors Seek Permission To Sell $744M Worth of Trust Assets

• FTX’s creditors filed a request to US bankruptcy court for authorization to sell certain assets held in trusts.
• The assets include five trusts held by Grayscale, including one managed by Bitwise. 
• FTX and Alameda Research had previously dumped $13.5 million in assets.

A court filing from November 3 revealed that bankrupt crypto exchange FTX, along with its creditors, has submitted a request to the U.S. bankruptcy court in Delaware for authorization to sell certain assets held in trusts. These assets include funds from Grayscale and Bitwise, with an approximate total value of $744 million. The filing highlighted that the sale would be carried out under the guidance of an investment advisor and noted:

The Debtors’ proposed sale(s) or transfer(s) of the Trust Assets will help allow the estates to prepare for forthcoming dollarized distributions to creditors and allow the Debtors to act quickly to sell the Trust Assets at the opportune time.

The “Trust Assets” refers to assets held in five Grayscale Trusts, which collectively have an approximate value of $691 million, and one trust under the management of Bitwise, which is valued at $53 million.

According to the document, since the debtors may potentially sell the Trust Assets to one or more purchasers in multiple transactions, following sale procedures will help reduce the expenses and time associated with filing individual motions for each proposed sale.

On November 2, crypto monitoring platform Lookonchain reported that wallets linked to FTX and Alameda Research transferred a total of $13.5 million in assets, consisting of 974,270 Render (RNDR) and 21,967 Compound (COMP), with respective values of $2 million and $995,000. According to Lookonchain’s findings, the combined holdings of virtual assets held by FTX and Alameda amount to a substantial $3.4 billion.

This isn’t the first dump made by the firms. Earlier, Coin Edition reported that wallets associated with FTX transferred six different cryptocurrencies valued at over $13.6 million to the crypto exchanges Binance and Coinbase. These transfers involve a variety of popular Ethereum Virtual Machine (EVM) tokens, including $2.64 million in DYDX, $1.05 million in AXS, $520,000 allocated to AAVE, and $4.85 million directed towards GRT.