John J Ray III, CEO, FTX debtors estate, has put in order for Digital Custody’s (DC) sale to CoinList, for a $500,000 worth markdown. The financing will be supplied by Terence Culver, seller and CEO, DC, as FTX originally paid an amount worth $10 million to acquire DC, with regards to Cointelegraph.
According to Cointelegraph, FTX’s legal filing stated that DC was purchased to provide custodial facilities for LedgerX and FTX US. From what it’s understood, the complete DC integration into FTX didn’t happen prior to Sam Bankman-Fried’s, previous CEO, filing for bankruptcy in November 2022, three months post DC acquisition. Seemingly, the purchasing of DC by FTX occurred over two five million dollar settlements, namely in December 2021 and August 2022.
Based on Cointelegraph’s data, FTX’s legal unit highlighted that due to FTX US not being reopened, DC carries little merit for the estate. “DCI is no longer useful to the Debtors’ business, given the Debtors’ sale of LedgerX and that it is unlikely for the Debtors to sell or restart FTX US,” the team stated. Despite everything, DC still has a custodial licence authorised by the South Dakota Division of Banking. Reportedly, both the committee and the ad hoc committee for FTX.com’s non US customers gave approval to the settlement, as has been clarified by FTX’s legal body. It’s believed that in case the buyer isn’t able to go through with the deal, a $50,000 worth reverse termination charge will be put into place.
Moreover, Cointelegraph noted that FTX shed light on how its reshuffling intentions don’t involve the firm’s revival but aims to completely repay customers. Sources suggest that many FTX users expressed their desire to the US bankruptcy judge to abstain FTX from evaluating their cryptocurrency deposits using 2022 prices.
(With insights from Cointelegraph)
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