FTX, a once-prominent player in the crypto exchange industry, has submitted a proposal to the US bankruptcy court in Delaware seeking to sell trust assets. These assets, valued at an estimated $744 million, consist of funds from Grayscale and Bitwise.
The objective of the asset sale is to facilitate distributions to creditors and minimize price volatility risks. To achieve this, the proposal involves the use of an investment adviser and the establishment of a pricing committee. The investment adviser will be tasked with obtaining a minimum of two bids from different counterparties before the sale of assets.
The proposal comes shortly after the conviction of Sam Bankman-Fried, FTX founder, who was found guilty of all the charges that had been levelled against him related to the collapse of FTX. Bankman-Fried’s sentencing is expected to take place on March 28, 2024, and could potentially result in a lengthy prison term.
This situation serves as a reminder of the risks associated with the ever-changing cryptocurrency landscape. Not only does it highlight the potential consequences faced by market participants, but it also provides valuable insight into the future of digital asset regulation.