Crypto Exchange FTX to Sell Trust Assets: Debtors Making a Desperate Cash Grab!

FTX Plans to Sell Over $740M in Grayscale and Bitwise Assets

FTX plans to offload $744M worth of Grayscale and Bitwise assets.

Hey there, fellow digital asset investors! I’ve got some juicy news for you today. Brace yourselves, because it’s about FTX, the bankrupt crypto exchange. Yes, you heard me right! FTX and its debtors are scurrying around like crazy and have asked the U.S. bankruptcy court to approve the sale of some trust assets valued at a whopping $744 million. Talk about a desperate cash grab!

Now, let me break it down for you. According to a court filing on Friday, FTX is planning to sell off trust assets, including funds from Grayscale and Bitwise. And guess what? They want to do it through an investment adviser. I mean, seriously? Can these guys get any more desperate? They’re practically begging to offload these assets as quickly as possible, claiming it will help them prepare for forthcoming dollarized distributions to creditors. You know, so they can avoid turning into stale bread in this cutthroat industry.

But wait, there’s more! FTX, once a colossus in the world of crypto exchanges, went bankrupt in November last year. CoinDesk blew the whistle on them, revealing a nightmarish tale of misappropriation of customer funds. Yikes! And if that wasn’t bad enough, FTX founder Sam Bankman-Fried has just been found guilty of defrauding his customers and lenders. The jury’s verdict hit him like a ton of bricks. A sentencing date has been set, and let’s just say it ain’t looking pretty for him. Can you picture it? Our dear Sam behind bars, counting the days while dreaming of Lambos and moonshots. It’s like a real-life crypto-themed sitcom!

Now let’s get back to these trust assets. Five Grayscale Trusts, totaling a jaw-dropping $691 million, and one trust managed by Bitwise, amounting to a cool $53 million, are up for grabs. But here’s the catch: these trust assets don’t actually give you ownership of the digital assets. It’s like going to a fancy restaurant and ordering a picture of a steak instead of actually sinking your teeth into the juicy goodness. Well, I guess it’s still better than nothing, right?

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To make things seem a bit more legit, the debtors are proposing to set up a pricing committee with representatives from all stakeholders. So, at least they’re trying to make it look like they’re playing by the rules. And hey, they even want the investment adviser to get at least two bids from different counterparties before selling off the assets. That’s something, I guess.

Now, here’s the kicker. Grayscale and CoinDesk, yup, the guys who outed FTX in the first place, are part of the same parent company called Digital Currency Group. Talk about keeping it all in the family, huh? It’s like a dysfunctional family reunion, where everyone’s fighting over who gets the biggest slice of the crypto pie.

So, fellow investors, what do you make of this wild ride with FTX? Are you laughing, crying, or both? Will they be able to sell off these trust assets and salvage what’s left of their reputation? Only time will tell. But hey, in the meantime, keep your eyes on the market, stay sharp, and remember to always read between the blockchain lines.

Stay tuned for more absurdly entertaining stories from the world of crypto!

Till next time, happy investing!

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Original article: Bankrupt Crypto Exchange FTX to Sell Grayscale and Bitwise Trust Assets

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