Bankrupt cryptocurrency company FTX plans to sell storage services at 95% discount

FTX bankruptcy leaders decided to sell the “digital custody” platform for $500,000.

FTX is the second largest cryptocurrency trading platform co-founded by Sam Bankman-Fried (SBF) and launched in 2019. Under SBF’s leadership, FTX ranked second in the cryptocurrency market in two years. In November 2022, the FTX exchange suffered a major collapse when FTX customers realized that the exchange was not holding funds and displaying fake financial reports to maintain public trust.

Recently, FTX bankruptcy leaders decided to sell FTX’s Digital Asset Management Platform (DCI) for just $500,000.

The platform was acquired by the company for $10 million, and the company planned to use it to provide cryptocurrency custody services to FTXUS and LedgerX.

The decision to sell this platform at a 95% discount is shocking. Either the DCI platform is not good enough for any company to use, or the bankruptcy leaders appear to have made poor decisions.

In the early stages of the FTX bankruptcy investigation, investigators found that the exchange’s fund custody services were very poor and that any employee could access and view the private keys of stored assets.

FTX Liquidation Plan

A few weeks ago, we reported that FTX bankruptcy leaders had filed a motion with the court to confirm a plan to liquidate the platform and compensate FTX customers.

According to the filing, management said it had decided to liquidate FTX’s assets and infrastructure because it was not receiving sufficient funding from bidders to reopen the exchange.

FTT Token Price Action

The current trading price of FTT, the native token of the FTX cryptocurrency exchange, is 17.7% higher than the last 24 hours trading price.

According to reports, some cryptocurrency whales are using the low trading volume of FTT tokens to mislead cryptocurrency investors and make easy money.

Here we would like to suggest to all our readers not to fall for tokens that are useless in every way. Already, the FTX team has confirmed that it will not be incorporating, using or bringing in any plans to protect FTT token investors.

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