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

  • FTX has submitted a request to sell its subsidiary, Digital Custody.
  • The exchange acquired Digital Custody in August 2022 for $10 million.
  • They have chosen to sell the custodial service to CoinList for $500,000.

Following its bankruptcy filing, FTX is seeking approval to sell its subsidiary, Digital Custody Inc (DCI). The necessary documents have been sent to the court by the company’s legal team.

FTX acquired Digital Custody, a custodial service, in two transactions totaling $10 million in August 2022. The intention was to utilize this company to provide specialized services to FTX.US and LedgerX.

However, due to time constraints, Digital Custody was not able to integrate into FTX’s ecosystem before the exchange filed for bankruptcy just three months after the acquisition.

Now, FTX is looking to sell Digital Custody to CoinList for $500,000. The purchase of the custodian will be financed by Teren Culver, the former CEO.

FTX’s legal team argues that the failure to relaunch FTX US eliminates the potential benefits of owning DCI. After evaluating proposals from three different entities, Culver and CoinList were selected as the most suitable candidates to acquire the firm.

It is important to note that in February 2024, FTX also filed a petition to sell its 7.84% stake in AI startup, Anthropic. The company has requested an expedited review process for the application.

In December 2023, it was reported that the startup plans to raise an additional $750 million with a valuation of $18.4 billion. In such a scenario, FTX’s share could potentially exceed a value of $1 billion.

As a reminder, we previously reported that FTX has decided against restarting the platform and is undergoing a liquidation process to compensate its clients.