FTX will sell Digital Custody, acquired for $10 million, for $500,000

  • FTX has filed to sell its subsidiary Digital Custody.
  • The exchange acquired the firm in August 2022 for $10 million.
  • They plan to sell the custodial service to CoinList for $500,000.

Failed cryptocurrency exchange FTX has sought permission to sell its subsidiary Digital Custody Inc (DCI). The company’s lawyers sent the relevant documents to the court.

Digital Custody is a custody service acquired by FTX in August 2022 in two transactions totaling $10 million. The exchange planned to use this company to provide specialized services to FTX.US and LedgerX.

However, Digital Custody did not have time to integrate the bankrupt crypto giant into the ecosystem. Three months after purchasing the company, the exchange filed for bankruptcy.

Now FTX wants to sell Digital Custody to CoinList for $500,000. Its former CEO Teren Culver will finance the purchase of the custodian.

The exchange’s lawyers argue that the failure to restart FTX US negates the potential benefits of owning DCI. After receiving proposals from three different parties, the company selected Culver and CoinList as the optimal candidate to acquire the firm.

It’s worth noting that in February 2024, FTX also filed a petition to sell its 7.84% stake in AI startup Anthropic. The company requested an expedited procedure for reviewing the application.

In December 2023, information appeared that the startup plans to raise an additional $750 million at a valuation of $18.4 billion. In this case, FTX’s share could reach a value of over $1 billion.

Let us remind you that we wrote that FTX refused to restart the platform and will undergo a liquidation process, thanks to which it plans to pay clients money.

USA News Today