📣 FTX Offloads Another Asset

posted  11 Feb 2024
Photo - FTX Offloads Another Asset
The bankrupt cryptocurrency exchange FTX is set to sell Digital Custody Inc. (DCI), a subsidiary it acquired for $10 million, to CoinList for merely $500,000. The leadership deems this transaction favorable, given that DCI, a provider of custodial services, has lost its utility following the abandonment of plans to reboot the platform.

The purchase is to be financed by the former CEO of Digital Custody Inc., Terence Culver. However, the sale may face challenges from creditors, as the company was never fully integrated into FTX's operations and still retains a banking license in South Carolina. If the transaction fails to complete, the exchange will incur a $50,000 penalty.

The halt on FTX's relaunch stemmed from a lack of interested buyers and long-term investors. As a result, the leadership chose to compensate users for their losses fully. However, this decision has left creditors dissatisfied, as the repayment plan relies on cryptocurrency prices at the moment of FTX's bankruptcy.