The bankrupt digital asset trading platform founded by disgraced crypto entrepreneur Sam Bankman-Fried, FTX, has decided to sell Digital Custody Inc. (DCI), a subsidiary that the firm acquired for $10 million between 2021 and 2022, for just $500,000.
As reported earlier by TheCoinRise, the bankrupt digital asset trading platform is currently focused on repaying the creditors and is not interested in a reboot, which was dubbed “FTX 2.0.” The firm is not considering restarting its operations after securing external funding and operational changes.
FTX to Sell $10M Subsidiary
It is important to note that the bankrupt exchange, under the leadership of CEO John Ray III, is currently engaged in selling the assets that the platform had amassed over the period of its popularity in order to pay the creditors.
As per a filing, FTX is currently selling Digital Custody Inc. (DCI) to CoinList at a significant discount of 95%, and the financing for the sale will be provided by DCI’s original CEO and seller, Terence J. Culver.
Minimal Value as an Asset
The filing from the lawyers states that the $10 million subsidiary is not useful for the crypto exchange because FTX has no plans to restart operations and is solely focused on repaying creditors and customers.
As an asset, DCI held no value for FTX, as it was originally purchased to provide custody solutions for FTX.US and LedgerX. Notably, the firm was never fully integrated into the exchange’s operations, and soon after, Bankman-Fried filed for bankruptcy.
“DCI is also 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 US,” read the filing.
FTX Received Three Offers for DCI
FTX received three compelling bids for the Digital Currency Institute (DCI), one of which came from its former CEO, Culver. The decision-making process by the debtors’ estate prioritized the potential of these offers to facilitate a swift transition.
Although the sale has garnered approval from pertinent committees, there remains a small window for the debtors’ estate to explore alternative offers before sealing the deal. Notably, a reverse termination fee of $50,000 is in place to safeguard against any potential transactional hiccups.
Sale of Shares in AI Firm Anthropic
Another important fact to mention here is that FTX also sold its shares in the valuable artificial intelligence startup Anthropic. The exchange dropped its 8% stake in the firm, which was valued at $1.4 billion.
“The public disclosure of the Reference Price could be detrimental to the Debtors’ goal of obtaining higher and better offers for the Anthropic Shares,” read a filing.