FTX plans sale of Digital Custody Inc. for $500K in bankruptcy move
FTX’s legal team clarified that since FTX U.S. hasn’t been restarted, Digital Custody Inc. holds little value for the estate, hence the sale.
The FTX Debtors estate, led by CEO John Ray III, has filed to sell another one of its assets: Digital Custody Inc. (DCI), which it bought for $10m to CoinList for a significant markdown of $500,000, with the financing provided by DCI’s original CEO and seller, Terence J. Culver.
According to FTX’s legal filing, DCI was acquired to offer custodial services for FTX U.S. and LedgerX. However, DCI was not fully integrated into the FTX ecosystem before former CEO Sam Bankman-Fried filed for bankruptcy in November 2022, three months after acquiring DCI. DCI was purchased by FTX as a subsidiary in two $5 million transactions in Dec. 2021 and Aug. 2022.
FTX’s legal team also clarified that since FTX U.S. hasn’t been restarted, Digital Custody Inc. holds little value for the estate. They state, “DCI is no longer useful to the Debtors’ business, given the Debtors’ sale of LedgerX and that it is unlikely for the Debtors to sell or restart FTX U.S..”