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FTX’s Decision to Drop Relaunch Plans Leads to DCI Sale at 95% Discount

Published 02/11/2024, 02:46 PM
Updated 02/11/2024, 08:45 PM
FTX’s Decision to Drop Relaunch Plans Leads to DCI Sale at 95% Discount

  • FTX decides to sell Digital Custody Inc. to CoinList at a discount of 95% for just 500,000.

  • The company acquired DCI in two transactions in 2021 and 2022, each valued at $5 million.

  • As the company dropped its plans to reboot FTX.US, it decided to sell DCI, which held minimal value as an asset.

In a recent filing, the FTX Debtors’ estate, under the leadership of CEO John Ray III, announced its decision to sell Digital Custody Inc. (DCI) to the centralized exchange (CEX), CoinList. In a bid to repay debts amidst increasing pressure from creditors and regulators, FTX has filed to sell the $10 million subsidiary at a massive discount of 95% for just $500,000.

According to the filing, FTX acquired DCI, a trust company registered in South Dakota, for a total amount of $10,000,000. While FTX envisioned providing custodial services for cryptocurrencies and other digital property for FTX US and LedgerX, the company purchased the subsidiary in two major transactions. On December 21, 2021, FTX entered into an agreement spending $5 million, and later, on August 6, 2022, the company acquired DCI with another $5 million.

The post FTX’s Decision to Drop Relaunch Plans Leads to DCI Sale at 95% Discount appeared first on Coin Edition.

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