FTX has announced that it has authorized the sale of $744 million worth of stakes in various digital asset trusts managed by Grayscale Investments.
FTX has been approved to liquidate $744 million worth of stakes in digital trusts managed by Grayscale Investments. The sale of these assets is a major step towards repaying billions of dollars owed to creditors.
In a November 3 court filing, FTX offered to sell Grayscale and Bitwise assets. Bitcoin and Ethereum Trusts are among Grayscale’s exchange-traded products.
FTX founder Sam Bankman-Fried was found guilty of all seven charges by a jury last year and potentially faces more than 100 years’ imprisonment.
FTX is a cryptocurrency exchange that was founded in 2019. The company has quickly become one of the world’s largest cryptocurrency exchanges, with a reported trading volume of over $320 billion in the first half of 2022.
Grayscale Investments is a digital asset management company that was founded in 2013. The company offers a variety of investment products, including exchange-traded funds (ETFs) and trusts. Grayscale’s Bitcoin Trust is the largest Bitcoin-based ETF in the world, with a reported AUM of over $38.8 billion.
The sale of Grayscale’s assets is a major step towards repaying billions of dollars owed to creditors. FTX is currently facing several lawsuits, including one from the Commodity Futures Trading Commission (CFTC). The CFTC alleges that FTX illegally offered cryptocurrency derivatives to U.S. customers.
The sale of Grayscale’s assets is also a significant development in the cryptocurrency market. It is the first time that a major cryptocurrency exchange has been approved to liquidate a large number of digital assets. The sale could have a significant impact on the price of Bitcoin and other cryptocurrencies.
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