Bankrupt crypto exchange FTX has won approval from the US Bankruptcy Court for the sale of crypto assets managed by Grayscale as part of efforts to repay creditors.
- U.S. Bankruptcy Judge John Dorsey issued the order according to a court document deposit on November 29, 2023. The trust’s assets were worth $774 million as of October.
- According to Judge Dorsey, the FTX debtors are only permitted to sell the trust assets through an investment advisor, with the sale being made either on crypto exchanges or over-the-counter (OTC).
- The latest development comes amid FTX’s ongoing efforts to recoup funds from multiple sources to repay creditors affected by the company’s collapse in November 2022.
- As previously reported CryptoPotato, FTX has filed a lawsuit against its former competitor Bybit, seeking over $950 million in crypto and cash. So far, the defunct cryptocurrency exchange has managed to recover around $7 billion in assets.
- As FTX looks to revive the bankrupt exchange, recent reports indicate that former FTX executives have teamed up to launch a new platform called Backpack.
- Sam Bankman-Fried, founder and former CEO of FTX, was convicted of multiple fraud and money laundering charges and faces a 115-year prison sentence. However, her lawyer plans to contest the charges, saying Bankman-Fried “maintains her innocence.”
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