A bankruptcy court in Delaware authorized FTX Trading and its related debtors on Wednesday to sell trust assets valued at $744 million, including investments in leading cryptocurrency funds such as Grayscale and Bitwise.
This decision, made by Judge John Dorsey, was in response to a motion filed by FTX Trading in early November seeking approval to sell units in six crypto funds – Grayscale Bitcoin Trust, Grayscale Ethereum Trust, Bitwise 10 Crypto Index Fund, Grayscale Ethereum Classic Trust, Grayscale Litecoin Trust, and Grayscale Digital Large Cap Trust.
The majority of the assets, worth $597 million, come from Grayscale’s bitcoin fund GBTC, with 22.3 million units to be sold.
The second largest portion, worth $87 million, comes from Grayscale’s Ethereum Trust with 6.3 million units.
The bankruptcy filing for FTX last November revealed serious issues with the company’s financial controls and misuse of user funds by its affiliated trading firm Alameda Research.
