FTX Management is Selling its $10 Million Investment for $500,000

FTX’s legal team is selling DC, which was purchased for $10 million at the time, for a modest amount of $500,000 due to the non-restart of FTX US and the inability to sell LedgerX.

The bankrupt cryptocurrency exchange FTX is trying to reduce its losses by continuing to sell assets. In recent weeks, FTX’s lawyers announced that the restructuring plans did not include relaunching the firm, but instead focused on making full refunds to customers.

Company Purchased for $10 Million Being Resold for $500,000

Under the leadership of CEO John Ray III, FTX management decided to sell its subsidiary, Digital Custody Inc. (DC), to CoinList for only $500,000. FTX had previously purchased DC for $10 million.

It was indicated that DC was purchased to provide custody services for FTX US and LedgerX. However, three months before former CEO Sam Bankman-Fried filed for bankruptcy, it was revealed that DC had not been fully integrated into the FTX ecosystem. FTX’s legal team stated that DC no longer held value due to the non-restart of FTX US and the low probability of selling LedgerX.

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