Bankrupt crypto exchange FTX is planning on selling one of its subsidiaries, Digital Custody, Inc. (DCI), to CoinList at a massive discount.
New court documents reveal that FTX is going to sell DCI, which it planned to use to provide custodial services for FTX.US and LedgerX customers, to crypto exchange CoinList for just $500,000 after acquiring it for over $10 million in 2022 – a 95% price cut.
“Seller acquired DCI, a trust company registered in South Dakota, in order to provide custodial services for cryptocurrencies and other digital property for FTX.US, its US cryptocurrency spot trading exchange, and non-Debtor LedgerX, the Debtors’ digital currency futures exchange and clearinghouse.
Given the timing of the acquisition, DCI was never integrated into the operations of FTX.US or LedgerX prior to the commencement of these Chapter 11 cases. Following the commencement of these Chapter 11 cases, the debtors sold its interest in LedgerX in May 2023. The debtors have also never sold or restarted the FTX.US exchange.”
According to the filings, CoinList (purchaser) and two other firms initially showed interest in scooping up DCI late last year, with the crypto exchange ultimately landing the deal.
“The debtors ultimately received indications of interest from three parties, including an indication of interest from purchaser, on December 15, 2023. Of these three prospective purchasers, the debtors proceeded with [the] purchaser and engaged in good faith negotiations with [the] purchaser regarding the terms of the agreement.”
FTX collapsed in November 2022 after its disgraced founder and former chief executive, Sam Bankman-Fried, was found to have been mishandling billions of dollars worth of customer funds, funneling them into Alameda Research, FTX’s sister firm, to make risky gambles on digital assets.
Bankman-Fried was found guilty on all seven charges against him in 2023.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/X-Poser
