FTX's Asset Shuffle: From $10 Million Acquisition to $500,000 Sale

Feb 11, 2024

FTX's estate, under CEO John Ray III, has filed to sell Digital Custody Inc. (DCI), a subsidiary acquired for $10 million, to CoinList for $500,000, financed by former DCI CEO Terence J. Culver. DCI, initially purchased to provide custodial services for FTX.US and LedgerX, was never integrated into FTX due to bankruptcy filings by former CEO Sam Bankman-Fried in November 2022. Despite retaining a South Dakota Division of Banking licence, DCI is deemed worthless to the estate after the sale of LedgerX and FTX.US. The sale, approved by committees and allowing FTX to solicit better bids until three days before closing, aims for expedited regulatory approval with CoinList's existing relationship with Culver. If the deal fails, a $50,000 reverse-termination fee applies.