Bankruptcy Court Declares FTX Debtors Can Begin To Sell $744,000,000 Worth of Grayscale and Bitwise Shares

A bankruptcy court is ruling that debtors of bankrupt crypto exchange FTX can begin selling hundreds of millions of dollars worth of Grayscale and Bitwise shares.

In a new filing, a court in Delaware is granting a motion filed earlier this month that would allow the debtors of FTX and its affiliates to start selling $744 million worth of trust assets associated with crypto asset management firms Grayscale and Bitwise.

“Upon the motion (the ‘Motion’) of FTX Trading Ltd. and its affiliated debtors and debtors-in-possession (collectively, the ‘Debtors’) for entry of an order (this ‘Order’) authorizing and approving (i) procedures for the sale or transfer of the trust assets and (ii) the sale or transfer of such trust assets in accordance with such procedures free and clear of any liens.”

According to previous reports, the trust assets set to be sold include five different Grayscale Trusts valued at $691 million as well as holdings of a Bitwise-managed trust valued at $53 million.

Earlier this month, on-chain data from blockchain tracker Lookonchain found that FTX suddenly began shifting around millions of dollars worth of digital assets Polygon (MATIC) and Avalanche (AVAX) to prominent crypto exchange platforms such as Coinbase and Binance.

FTX initially filed for bankruptcy last November and its disgraced founder, Sam Bankman-Fried, was charged with mishandling billions of dollars worth of customer funds as well as defrauding investors. He was found guilty earlier this year and sentenced to decades behind bars.

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Featured Image: Shutterstock/Bushko Oleksandr