FTX seeks sale of Grayscale and Bitwise trust assets worth $744 million
Bankrupt crypto exchange FTX has requested the bankruptcy court in Delaware to allow it to sell certain key trust funds, including assets from crypto asset manager Grayscale and custody service provider Bitwise valued at around $744 million.
In a court filing dated Nov. 3, FTX debtors requested the court to allow them to sell Trust assets as it will make way for the firm to prepare for “forthcoming dollarized distributions to creditors.”
These trust assets are held in one Bitwise trust valued at $53 million and five Grayscale trusts valued at $691 million. These crypto trusts act as an onboarding tool for many and allow investors to gain crypto exposure without owning one.
The court filing read:
“The Debtors’ judgment is that proactively mitigating the risk of price swings will best protect the value of the Trust Assets, thereby maximizing the return to creditors and promoting an equitable distribution of funds in the Debtors’ plan of reorganization.”
The FTX debtors requested that the sale of trust assets and sale procedures should be approved by an investment adviser. Also, they proposed a pricing committee represented by the stakeholders to be part of the sale procedure.
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The latest request by FTX debaters for the sale of trust assets comes after the court had earlier approved the liquidation of nearly $3.4 billion in crypto assets. The court ordered the sale of these assets in batches of $50 million and $100 million to avoid any market dump.
The FTX bankruptcy proceedings are moving along as the former FTX CEO Sam Bankman-Fried was found guilty by a jury on all seven counts during his criminal trial in New York. The former CEO was found guilty of two counts of wire fraud, two counts of wire fraud conspiracy, one count of securities fraud, one count of commodities fraud conspiracy and one count of money laundering conspiracy. The judge is set to order sentencing in the case on March 28, 2024.
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Politics
Rachel Reeves turning around UK’s finances ‘like Steve Jobs did for Apple’, claims minister
Rachel Reeves will turn around the economy the way Steve Jobs turned around Apple, a cabinet minister has suggested ahead of the upcoming spending review.
Science and Technology Secretary Peter Kyle compared the chancellor to the late Apple co-founder when asked on Sky News’ Sunday Morning with Trevor Phillips where the £86bn for his department is coming from.
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Apple Inc. chief executive Steve Jobs, who died in 2011. Pic: Reuters
Chancellor Rachel Reeves
The package, confirmed ahead of the full spending review next week, will see each region in England granted £500m to spend on science projects of their choice, including research into faster drug treatments.
Asked by Trevor Phillips how the government is finding the money, Mr Kyle said: “Rachel raised money in taxes in the autumn, we are now allocating it per department.
“But the key thing is we are going to be investing record amounts of money into the innovations of the future.
“Just bear in mind that how Apple turned itself around when Steve Jobs came back to Apple, they were 90 days from insolvency. That’s the kind of situation that we had when we came into office.
“Steve Jobs turned it around by inventing the iMac, moving to a series of products like the iPod.
“Now we are starting to invest in the vaccine processes of the future, some of the high-tech solutions that are going to be high growth. We’re investing in our space sector… they will create jobs in the future.”
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The spending review is a process used by governments to set departmental budgets for the years ahead.
Asked if it will include more detail on who will receive winter fuel payments, Mr Kyle said that issue will be “dealt with in the run-up to the autumn”.
“This is a spending review that’s going to set the overall spending constraints for government for the next period, the next three years, so you’re sort of talking about two separate issues at the moment,” he said.
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‘So we won’t get an answer on winter fuel this week?
Scrapping universal winter fuel payments was one of the first things Labour did in government – despite it not being in their manifesto – with minsters saying it was necessary because of the financial “blackhole” left behind by the Tories.
But following a long-drawn out backlash, Sir Keir Starmer said last month that the government would extend eligibility, which is now limited to those on pension credit.
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It is not clear what the new criteria will be, though Ms Reeves has said the changes will come into place before this winter.
Mr Kyle also claimed the spending review will see the government invest “the most we’ve ever spent per pupil in our school system”.
However, he said the chancellor will stick to her self-imposed fiscal rules – which rule out borrowing for day-to-day spending – meaning that while some departments will get extra money, others are likely to face cuts.
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