The legal representatives of the reorganized team claim that keeping Digital Custody Inc. (DCI) under custody would not create any value since it is unlikely to relaunch FTX.US. Therefore, they have sold it to CoinList at a significant discount.
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Acquisition of DCI for tens of millions of dollars, FTX sells it for $500,000
Approved DCI transaction, former CEO buys it back at a low price
Acquisition of DCI for tens of millions of dollars, FTX sells it for $500,000
According to The Block, FTX’s reorganized team, led by current CEO John Ray, has applied to the court to sell custody provider Digital Custody Inc. (DCI).
FTX acquired DCI for two separate amounts of $5 million in December 2021 and August 2022. However, they have now decided to sell it to CoinList for only $500,000.
FTX’s legal representatives explained:
Although DCI was never formally integrated into the FTX ecosystem after the acquisition, and former CEO SBF applied for bankruptcy for FTX after the acquisition of DCI, the acquisition of DCI was primarily for providing custody services to FTX.US and LedgerX. However, since it is unlikely to relaunch FTX.US and LedgerX has also been sold previously, DCI is essentially worthless.
Approved DCI transaction, former CEO buys it back at a low price
FTX’s lawyers pointed out that both the committee and the special committee for FTX.com non-US customers have approved the transaction. However, as part of the transaction, FTX must find a better quote for DCI three days before the transaction settlement. If the buyer fails to complete the transaction, a cancellation fee of $50,000 will be charged.
DCI holds a license issued by the banking department of South Dakota, USA, which allows it to provide custody services. The sale received three-party quotes, including CoinList, and FTX chose CoinList because it facilitates obtaining regulatory approval.
FTX
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