Crypto giant FTX is in the process of selling its subsidiary, Digital Custody Inc. (DCI), which it acquired through two separate $5 million transactions in December 2021 and August 2022. Interestingly, FTX is offloading this asset to CoinList for a mere $500,000. The financing for this acquisition is being provided by Terence J. Culver, the original CEO of DCI.

Initially, FTX acquired DCI with the aim of strengthening custodial services for FTX.US and LedgerX. However, the venture took a downturn when integration into the FTX ecosystem failed, leading to the bankruptcy declaration of former CEO Sam Bankman-Fried in November 2022. Despite this setback and FTX's inability to relaunch FTX.US, the firm's legal team emphasized that DCI remained a valuable asset in their portfolio.

Nevertheless, DCI still possesses a valuable banking license from South Dakota, enabling it to offer custodial services. After considering offers from three potential buyers, FTX chose CoinList, citing the best deal and assurances of swift execution of the sale. Culver's prior association with DCI was also deemed instrumental in expediting regulatory approval for the transaction.

The transaction has been approved by both the Committee and the Ad Hoc Committee of Non-US Customers of FTX.com. As per the deal's terms, FTX has a three-day window before the closing to seek better offers for its subsidiary. Additionally, a $50,000 reverse-termination fee will be incurred if the buyer fails to finalize the deal.