FTX Reorganizes Team, Selling Custodial Institution DCI for $500,000 After Previously Acquiring it for Millions of Dollars
Reorganized FTX Team Sells Digital Custody Inc. (DCI) to CoinList at a Significant Discount as Restarting FTX.US Seems Unlikely
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Acquisition Worth Millions of Dollars: FTX Sells DCI for $500,000
DCI Transaction Approved, Former CEO Buys Back at a Low Price
According to The Block, the reorganized FTX team led by current CEO John Ray has applied to the court to sell the custody firm Digital Custody Inc. (DCI). FTX acquired DCI for $5 million in December 2021 and August 2022, but has now decided to sell it to CoinList for only $500,000.
FTX’s legal representatives explained that although DCI was never formally integrated into the FTX ecosystem after its acquisition and before former CEO SBF applied for bankruptcy on behalf of FTX, the acquisition of DCI was primarily for providing custody services to FTX.US and LedgerX. However, due to the unlikelihood of restarting FTX.US and the previous sale of LedgerX, keeping DCI essentially holds no value.
DCI holds a license issued by the banking department of South Dakota, USA, which allows it to provide custody services. The sale received quotes from three parties, including CoinList, and FTX chose CoinList because it facilitates obtaining regulatory approval quickly.
FTX
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