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FTX plans to sell for $500,000 the escrow units it bought for $10 million in the months before bankruptcy

FTX plans to sell for $500,000 the escrow units it bought for $10 million in the months before bankruptcy

2024/02/12 19:41

FTX plans to sell its subsidiary Digital Custody Inc.(DCI), which it purchased for $10 million a few months prior to its bankruptcy, to token-selling platform CoinList for $500,000.FTX purchased DCI on 6 August 2022 for a total of $10 million from Digital Finance Group and DCI chief Executive Officer Terrence Culver.FTX filed for bankruptcy on 11 November of the same year, after CoinDesk revealed that not all was as it appeared in Bankman-Fried's empire.DCI was initially purchased to provide custodial services for FTX.US and U.S.-based LedgerX, but due to the FTX empire's s collapse, it was never integrated into any operations. According to court documents, DCI operated "relatively little" after FTX said it would not re-launch or sell its exchanges after selling LedgerX. Nonetheless, DCI remains a valuable company since it has received an escrow licence from the state of South Dakota.

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