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CoinList to Acquire FTX’s Digital Custody Subsidiary in Cut-Price Deal

Under the guidance of CEO John Ray III, the FTX Debtors estate has commenced the sale process of Digital Custody Inc. (DCI) to CoinList.

FTX had previously purchased the subsidiary through two distinct transactions, one in December 2021 and the other in August 2022, totaling $10 million.

However, CoinList will now acquire DCI for a considerably reduced amount of $500,000.

The financing for this transaction will be facilitated by Terence J. Culver, the original CEO and seller of Digital Custody.

Digital Custody Never Integrated to FTX Ecosystem

FTX’s legal team stated that the acquisition of DCI was originally intended to provide custodial services for FTX.US and LedgerX.

However, following former CEO Sam Bankman-Fried’s bankruptcy filing in November 2022, the integration of DCI into the FTX ecosystem did not materialize, making the subsidiary essentially worthless to the FTX estate.

Despite its diminished value to FTX, Digital Custody still maintains a license from the South Dakota Division of Banking, enabling it to offer custodial services.

After receiving offers from three interested parties, including Culver, the Debtors opted for CoinList as the preferred buyer. This decision was based on CoinList’s superior offer, their ability to swiftly complete the transaction, and their existing relationship with Culver.

The Debtors anticipate that CoinList’s connection with Culver will be beneficial in accelerating regulatory approval for the sale.

FTX’s legal representatives have revealed that both the Committee and the Ad Hoc Committee of Non-US Customers of FTX.com have endorsed the transaction.

However, as stipulated in the agreement, FTX reserves the right to entertain more advantageous offers for DCI up until three days before the deal’s closure.

A reverse-termination fee of $50,000 will be enforced should the purchaser fail to complete the transaction.

FTX to Sell AI Startup Anthropic

Last week, FTX sought approval to divest its 8% stake in AI startup Anthropic Holdings.

In a motion submitted by FTX’s current CEO, the exchange sought permission to proceed with the sale and presented two potential methods: an auction or a private sale.

FTX also requested a condensed timeline for objections to be raised, with a court hearing slated for February 22 to hasten the decision-making process.

The exact price sought for the Anthropic shares has been withheld from the filing, as FTX’s legal advisors assert that public disclosure could impede the possibility of securing higher offers for the stake.

In December 2023, Anthropic Holdings garnered a reported valuation of up to $18 billion, suggesting that FTX’s 7.84% stake could potentially be valued at approximately $1.4 billion.

This valuation has instilled optimism among victims of the FTX collapse, as FTX foresees having adequate funds to fully reimburse all customer and creditor claims.

Earlier this month, FTX also filed a motion in a Delaware court to liquidate its $175 million claim against bankrupt digital financial services firm Genesis Global Capital.

Presently, claims against Genesis are being sold at 65% of their face value, a significantly higher rate compared to the 38% at which Alameda Research claims are being sold.

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