TechFlow news, according to The Block, the FTX debtor's estate administration has filed to sell its subsidiary Digital Custody Inc., which was acquired in August 2022 for $10 million, to CoinList for just $500,000. The acquisition is funded by Terence Culver, former CEO of Digital Custody Inc., although the estate may solicit better offers up to three days before the motion hearing.
FTX's attorneys explained in court filings that DCI was acquired to provide custody services for FTX.US and LedgerX, but the company was never formally integrated into the FTX ecosystem before former CEO Sam Bankman-Fried filed for bankruptcy in November 2022—just three months later. The attorneys also stated that their inability to revive FTX.US means DCI holds essentially no value for the estate, writing, "Given that the debtors have sold LedgerX, DCI is no longer useful to the debtors’ business, and the debtors are unlikely to sell or restart FTX US."
