The FTX Debtors estate has filed to sell Digital Custody Inc., a subsidiary it acquired by August 2022 for a total of $10 million, to CoinList for just $500,000.
The purchase is being financed by the former CEO of Digital Custody Inc., Terence Culver, though the Debtors may solicit better bids until three days before the motion is heard.
The FTX Debtors estate, led by CEO John Ray III, has filed to sell another one of its assets: Digital Custody Inc. (DCI). FTX had purchased the subsidiary in two $5 million transactions in Dec. 2021 and Aug. 2022; however, the company will be sold to CoinList for just $500,000, with the financing provided by DCI’s original CEO and seller, Terence J. Culver.
In their filing, FTX’s lawyers explain that DCI was purchased to provide custodial services for FTX.US and LedgerX, though the company was never formally integrated into the FTX ecosystem before former CEO Sam Bankman-Fried filed for bankruptcy in November 2022, three months after the DCI purchase was finalized.
The lawyers also explain that their failure to restart FTX.US means DCI is essentially worthless to the estate, writing “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.”
