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Post: FTX Debtors Estate to Sell Digital Custody Inc. (DCI) to CoinList at a Markdown

FTX Debtors Estate to Sell Digital Custody Inc. (DCI) to CoinList at a Markdown

Key Points:

  • The FTX Debtors estate, led by CEO John Ray III, has filed to sell its asset, Digital Custody Inc. (DCI), to CoinList.
  • DCI was acquired to offer custodial services for FTX U.S. and LedgerX, but the integration was incomplete before FTX CEO Sam Bankman-Fried filed for bankruptcy.
  • FTX’s legal team states that DCI holds little value for the estate since FTX U.S. has not been restarted and is unlikely to be sold or restarted.

Insight:

The FTX Debtors estate is looking to sell Digital Custody Inc. (DCI) to CoinList. DCI was acquired to provide custodial services for FTX U.S. and LedgerX, but due to the bankruptcy filing of FTX CEO Sam Bankman-Fried, the integration of DCI into the FTX ecosystem was incomplete. FTX’s legal team argues that since FTX U.S. has not been restarted and is unlikely to be sold or restarted, DCI holds little value for the estate. Therefore, they are seeking to sell it at a significant markdown to CoinList. This move suggests a strategic decision by the FTX Debtors to divest themselves of assets that are no longer integral to their business operations.

Hot Take:

The decision by the FTX Debtors estate to sell Digital Custody Inc. (DCI) at a significant markdown reflects their focus on streamlining their operations and divesting assets that have limited value. By selling DCI to CoinList, the estate can recoup some of the investment made in acquiring the company while freeing up resources for other strategic initiatives. This move demonstrates the adaptability and pragmatism of the FTX team in navigating the challenges posed by the bankruptcy filing and ensuring the long-term viability of their business.

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