A Delaware bankruptcy court has approved the sale of trust assets worth $744 million, including holdings in Grayscale and Bitwise funds, by FTX Trading and its associated debtors.
The decision was made on Wednesday by Judge John Dorsey in response to a motion filed in November seeking permission to liquidate units in six cryptocurrency funds.
Grayscale Bitcoin Trust, Grayscale Ethereum Trust, Bitwise 10 Crypto Index Fund, Grayscale Ethereum Classic Trust, Grayscale Litecoin Trust, and Grayscale Digital Large Cap Trust are among these funds.
Grayscale’s flagship bitcoin fund (GBTC) holds the majority of these assets, accounting for nearly 22.3 million units valued at $597 million. Grayscale’s Ethereum Trust is ranked second, with 6.3 million units worth $87 million.
In November of the previous year, FTX filed for bankruptcy. In December, the court-appointed CEO, John Ray III, testified before Congress, highlighting systemic failures in corporate controls, inadequate financial transaction documentation, and significant misuse of user funds by affiliated trading firm Alameda Research.
On November 2, former FTX CEO Sam Bankman-Fried was found guilty of fraud. As The Block reported earlier this month, bankruptcy claims have recently been trading at 60 to 65 cents on the dollar, with prices rising as the prospect of asset recovery approaches.