Bankrupt Cryptocurrency Company Sold It for Nothing! - Kriptokoin.com

Leading cryptocurrency exchange FTX, led by CEO John Ray III, has made the important decision to sell one of its subsidiaries, Digital Custody Inc (DCI), to CoinList, a platform known for token sales and trading, in order to ease its financial burdens and repay debts. The sale, which is currently awaiting court approval, comes at a notable discount, with FTX agreeing to part ways with DCI for just $500,000, representing a staggering 95 percent reduction from the original $10 million acquisition cost. Here are the details…

FTX sold its cryptocurrency company

FTX initially acquired DCI, a South Dakota-registered trust company, to strengthen its services by offering custody solutions for cryptocurrencies and other cryptoassets. In the acquisition, which was completed in two separate transactions, FTX invested $ 5 million on December 21, 2021, and then another $ 5 million on August 6, 2022. However, despite these initial goals, FTX's plans for DCI were never fully realized, primarily due to unforeseen challenges in the cryptocurrency landscape, including regulatory pressures and internal restructuring issues.

Decision to divest DCI, FTX It comes as 's recent announcement that it has abandoned plans to relaunch FTX as FTX.com. Despite its intention to rejuvenate its operations under a new brand, FTX encountered difficulties in securing the necessary investment to support the relaunch and ultimately decided to discontinue the project. As a result, DCI was deemed redundant in FTX's asset portfolio, with no immediate plan to revitalize its US-based operations, including FTX.US.

Judiciary will review DCI sale

CoinList's acquisition of DCI, though subject to judicial review, was facilitated by Terence J. Culver, DCI's original CEO and dealer. Culver, who played a key role in founding DCI, further solidified his involvement in the deal by agreeing to lend $500,000 to facilitate the transaction. In addition to financial support, Culver will benefit from the transaction by acquiring a 10% stake in CoinList, underscoring its commitment to the cryptocurrency ecosystem.

FTX's legal representatives said in court filings. He emphasized that DCI has minimal value for FTX following the sale of LedgerX and the halt of efforts to revive FTX.US. Although FTX investigated potential buyers for DCI, it concluded that a sale to CoinList represented the most appropriate option to maximize the value of the asset. The proposed sale received support from key stakeholders, including the Committee of Unsecured Creditors and the Ad Hoc Committee of FTX.com's Non-U.S. Customers, demonstrating a consensus among the parties involved in FTX's bankruptcy proceedings.

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