CoinList to Acquire FTX’s Digital Custody Subsidiary in Cut-Price Deal

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By BitcoinWiki News

Key Takeaways:

  • FTX is selling Digital Custody Inc. (DCI) to CoinList for $500,000
  • CoinList will finance the deal
  • DCI was acquired by FTX in 2021 and 2022 for $10 million
  • FTX is also selling their stake in AI startup Anthropic Holdings
  • FTX filed a motion in Delaware court to sell their $175 million claim against Genesis Global Capital
  • FTX believes they will have sufficient funds to fully repay all customer and creditor claims

1. Overview of FTX and Digital Custody Inc. (DCI) Transaction
– FTX Debtors estate is selling DCI to CoinList for $500,000
– FTX had acquired DCI for $10 million in two previous transactions
– DCI was never integrated into FTX ecosystem due to bankruptcy filing of former CEO
– Despite limited value to FTX, DCI holds a license from the South Dakota Division of Banking

2. Sale Process and Purchaser
– CoinList selected as preferred purchaser based on superior offer and existing relationship with seller
– Terence J. Culver, original CEO and seller of DCI, providing financing for the deal
– CoinList’s association with Culver expected to expedite regulatory approval for the sale
– FTX retains right to consider more favorable offers until three days before closing of the deal

3. FTX’s Other Asset Sales
– FTX seeks approval to sell its 8% stake in AI startup Anthropic Holdings
– Two possible procedures proposed for the sale: auction or private sale
– FTX also filed a motion to sell its $175 million claim against bankrupt digital financial services firm Genesis Global Capital
– FTX’s legal team believes public disclosure of the precise price sought for the Anthropic shares could hinder potential for higher offers

4. Value of Anthropic Holding and Claims Against Genesis
– Anthropic Holdings achieved a valuation of up to $18 billion in December 2023
– FTX’s 7.84% stake in Anthropic could be worth approximately $1.4 billion
– Claims against Genesis are selling for 65% of their face value, significantly higher than the 38% claimed by Alameda Research

5. Approval and Support for the Transactions
– Committee and the Ad Hoc Committee of Non-US Customers of have approved the DCI transaction
– Court hearing scheduled for February 22 to expedite the deliberation process for the Anthropic stake sale
– FTX anticipates having sufficient funds to fully repay all customer and creditor claims through asset sales and claims against Genesis

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