FTX Slashes Digital Custody Unit Price in Post-Collapse Sale

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By BitcoinWiki News

Key Takeaways:

  • FTX is set to sell its Digital Custody Inc. (DCI) unit to CoinList for $500,000
  • DCI was purchased by FTX for $10 million in August 2022
  • DCI holds a custody license from South Dakota
  • DCI’s operations declined after the sale of LedgerX and FTX’s decision not to restart or sell its exchange
  • FTX aims to repay all its creditors and has been actively seeking to divest some of its subsidiaries as part of the ongoing bankruptcy process
  • FTX filed a motion to sell its $175 million claim against Genesis Global Capital

1. Summary
FTX, a defunct crypto exchange, is planning to sell its Digital Custody Inc. (DCI) unit to CoinList for $500,000, a significant loss compared to its original purchase price of $10 million. The decision to sell DCI comes after FTX’s bankruptcy and the collapse of its operations, including the sale of LedgerX. Despite the decline in operations, DCI still holds value due to its custody license from South Dakota.

2. Sale Process
FTX debtors have chosen to consider higher bids from other interested parties up to three days before the sale hearing. However, after evaluating other offers, FTX debtors determined that the sale to CoinList and DCI CEO, Terrence Culver, would be the most favorable outcome. Culver will provide financing to CoinList through convertible notes for the acquisition, and the deal includes a $50,000 break-up fee in the event of a failed transaction.

3. FTX’s Financial Obligations
FTX has expressed its intention to repay all its creditors and has been actively seeking to divest some of its subsidiaries as part of the ongoing bankruptcy process. The exchange is also seeking approval to sell its stake in AI startup Anthropic Holdings, with a court hearing scheduled for February 22 to expedite the deliberation process. FTX remains committed to resolving its debts and finding viable solutions for its remaining assets.

4. Efforts to Restructure
The sale of DCI at a significantly reduced price reflects FTX’s efforts to restructure and address its financial obligations amidst the fallout from its bankruptcy. The platform has also filed a motion to sell its claim against bankrupt digital financial services firm Genesis Global Capital, indicating a proactive approach to resolving its financial situation.

5. Conclusion
FTX’s decision to sell DCI at a fraction of its original purchase price, along with its efforts to divest other subsidiaries and address its financial obligations, demonstrates the exchange’s commitment to navigating its bankruptcy and finding viable solutions for its remaining assets. As the process continues, FTX remains focused on repaying its creditors and restructuring its operations.

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