FTX Gets Court Approval to Sell $873M of assets to repay creditors.

FTX has received court approval for the sale of $873 million in assets to repay creditors, marking a significant development in the crypto exchange's restructuring efforts. This move aims to address financial obligations and navigate challenges in the evolving cryptocurrency landscape.

FTX Gets Court Approval to Sell $873M of assets to repay creditors.

FTX, the bankrupt crypto exchange, has received court approval to sell its trust assets, including shares of Grayscale and Bitwise investment funds worth approximately $873 million. The approval was granted by a Delaware bankruptcy court, according to a court document filed on Friday.

The court also expanded the role of Galaxy Digital, a crypto investment firm, to assist FTX in selling its trust assets. Galaxy was appointed earlier this year to manage FTX‘s extensive digital asset holdings.

The trust assets held by FTX include shares in various Grayscale funds, such as the Grayscale Bitcoin Trust (GBTC) and a Bitwise crypto index fund. According to a court document filed on November 3, these assets were valued at $744 million as of October 25.

However, due to the recent rally in cryptocurrency prices, the value of FTX’s trust holdings is estimated to be around $873 million. This increase in value can be attributed to the narrowing of GBTC’s discount to its net asset value, reflecting the rise in bitcoin prices.

The court filing states that FTX is authorized, but not directed, to execute sales of the trust assets by specific procedures. The exact timeline for the sale of these assets has yet to be disclosed.

This court approval marks a significant step in FTX’s bankruptcy proceedings, allowing the exchange to liquidate its trust assets and recover a substantial portion of its debts. It also highlights the growing interest in digital assets, as institutional investment firms like Grayscale and Bitwise have gained popularity among investors seeking exposure to cryptocurrencies.

FTX’s collaboration with Galaxy Digital further strengthens the partnership between the two firms, with Galaxy playing a crucial role in managing and disposing of the trust assets. The involvement of a reputable crypto investment firm like Galaxy is expected to instill confidence in potential buyers and facilitate a smooth sale process.

As FTX moves forward with selling its trust assets, stakeholders will closely monitor the outcomes and potential impact on the cryptocurrency market.

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