FTX, once acquired for tens of millions of dollars, now sells custody firm DCI for $500,000 after team restructure.

The reorganized team's lawyer representative claimed that it was unlikely to restart FTX.US and that keeping the custodian entity Digital Custody Inc. (DCI) would not create any value, thus leading to a significant discount sale to CoinList.

$10 Million Acquisition, FTX Sells DCI for $500,000

According to The Block, FTX, led by current CEO John Ray, has filed with the court to sell the custody provider Digital Custody Inc. (DCI).

FTX acquired DCI in two transactions in December 2021 and August 2022 for $5 million each, but has now decided to sell it to CoinList for only $500,000.

FTX's legal representative explained:

Although DCI was never formally integrated into the FTX ecosystem before former CEO SBF applied for bankruptcy for FTX, the acquisition of DCI was mainly to provide custody services for FTX.US and LedgerX. However, with FTX.US unlikely to restart and LedgerX already sold, keeping DCI essentially has no value.

DCI Transaction Approved, Former CEO Buys Back at a Low Price

FTX's lawyer noted that both the committee and the FTX.com non-US customer special committee have approved the transaction, but as part of the deal, FTX must find a better offer for DCI three days before the transaction settlement. If the buyer fails to complete the transaction, a cancellation fee of $50,000 will be charged.

DCI holds a license issued by the South Dakota banking department in the United States, allowing it to provide custody services. The sale received quotes from three parties, including CoinList, and FTX chose CoinList because it would facilitate obtaining regulatory approval quickly.