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FTX Files to Sell Subsidiary Acquired for $10 Million to CoinList for $500,000

Katie Lin

Summary: The FTX Debtors estate has filed to sell Digital Custody Inc. (DCI), a subsidiary it had acquired for $10 million in August 2022, to CoinList for just $500,000, according to reports by The Block. The purchase is being financed by former DCI CEO Terence Culver. However, there is a possibility that the debtors may entertain ...

The FTX Debtors estate has filed to sell Digital Custody Inc. (DCI), a subsidiary it had acquired for $10 million in August 2022, to CoinList for just $500,000, according to reports by The Block. The purchase is being financed by former DCI CEO Terence Culver. However, there is a possibility that the debtors may entertain better bids until three days before the motion hearing. 

In their filing, FTX's lawyers explained that DCI was purchased to provide custodial services for FTX.US and LedgerX. Unfortunately, the company was never formally integrated into the FTX ecosystem before former CEO Sam Bankman-Fried declared bankruptcy in November 2022, just three months after the purchase. The attorneys also emphasized that FTX's failure to relaunch FTX.US rendered DCI essentially valueless 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."

Author: Katie Lin

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