Share this article
FTX to Sell Custody Unit for $500K After Paying $10M Just Months Before Collapse
The bankrupt exchange's unit, Digital Custody Inc., which FTX bought for $10 million, sold for just $500k to CoinList.
Updated Mar 8, 2024, 9:24 p.m. Published Feb 12, 2024, 6:18 p.m.
- FTX will sell Digital Custody Inc. (DCI) to CoinList for 95% less than it bought in 2022.
- DCI's original CEO will provide financing to CoinList for the purchase.
- Debtors said that DCI remains a valuable franchise, given it has already acquired a custody license from South Dakota.
Sam Bankman-Fried's defunct exchange FTX plans to sell one of its units it bought for $10 million just months before bankruptcy, for a mere $500,000 to the token sale platform CoinList.
FTX purchased Digital Custody Inc. (DCI) for a total price of $10 million on Aug. 6, 2022, from Digital Finance Group and DCI's CEO Terrence Culver, according to a court filing. The exchange filed for bankruptcy on Nov. 11 that same year after CoinDesk unveiled that not everything was as it seemed for Bankman-Fried's empire.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
DCI was initially bought to provide custodial services for FTX.US and U.S.-based LedgerX, but due to the collapse of the FTX empire, it was never integrated into either operation. Following the sale of LedgerX – and after FTX said it wouldn't restart or sell its exchange – DCI had "relatively few operations," according to the court filing. Still, DCI remains a valuable franchise, given it has already acquired a custody license from South Dakota, according to the filing.
"The Debtors believe that a prompt sale of the Interests will enable the Debtors to defray or avoid any further and additional operational, carrying or other expenses associated with the Interests," the filing said. "DCI is also no longer useful to the Debtors’ business given the Debtors’ sale of LedgerX and that it is unlikely for the Debtors to sell or restart FTX US," the filing added.
The debtors of FTX won't hold an auction for the sale but will be able to consider higher bids from other parties up to three days before the hearing of the sale. FTX debtors have already evaluated bids from other interested buyers and decided that a sale to CoinList and Culver would be the best outcome, given Culver's previous role in DCI getting its license in South Dakota and ability to execute the purchase quickly, according to the filing.
Culver will provide financing to CoinList via convertible notes for the purchase. There is a $50,000 break-up fee associated with the deal if it falls apart.
FTX said it eventually plans to repay all its creditors and has been trying to offload some of its subsidiaries as part of its bankruptcy process. Most recently, the exchange said it plans to sell a stake in artificial intelligence (AI) startup Anthropic, in which FTX and sister investment firm Alameda invested $500 million in 2021.
Meer voor jou
Wat u moet weten:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
Meer voor jou
Michael Saylor's Strategy Hangs on to Spot in Nasdaq 100 Index
The annual Nasdaq 100 rebalance saw six companies dropped and three new additions, with changes taking effect on December 22, but bitcoin treasury company Strategy hung onto its spot.
Wat u moet weten:
- Strategy (MSTR) will remain in the Nasdaq 100 index despite a major reshuffle, which saw several household names dropped.
- The firm's business model, which involves stockpiling bitcoin, has drawn criticism from analysts and index providers, with MSCI considering excluding crypto treasury companies from its benchmarks.
- The Nasdaq 100 rebalance saw six companies dropped and three new additions, with changes taking effect on December 22, but Strategy's bitcoin-heavy strategy secured its spot.
Top Stories
