FTX received judge’s approval to start raising funds and selling business units to LedgerX and creditors. The parties indicate that they are interested in making an offer. cryptocoin.comWe have compiled the details of the judge’s approval of FTX sales for you.
FTX will sell business units
Crashing crypto exchange FTX has given the green light from the judiciary to begin selling parts of its business, the next step in raising funds to repay its more than one million creditors. Judge John Dorsey ruled on Thursday that LedgerX, Embed and FTX’s European and Japanese operations could begin their auction processes in the coming days.
The team overseeing the liquidation of FTX said earlier this month that more than 100 interest bids were submitted to the bankruptcy court. The U.S. Board of Trustees, a division of the Department of Justice, had previously objected to any sales process due to ongoing investigations into FTX. Thursday’s decision said the Board of Trustees can review the sales process and appeal.
A lawyer for FTX told the court on Wednesday that the firm has found nearly $5 billion in cash, liquid assets and cryptocurrencies so far. Any unit sales will be added to this pot. It is not yet clear how much is owed to creditors. Speaking at the same hearing, FTX attorney Andy Dietderich said the exchange’s missing financial records meant his team had reconstructed claim values for each client.
The judge approved
Investment bank Perella Weinberg is now allowed to continue selling the crypto exchange, including its European and Japanese units, which has already attracted up to 117 expressions of interest. Judge John Dorsey of the Delaware Bankruptcy Court, who was accused of overseeing the liquidation of the exchange, upheld the measures in a ruling Thursday, following a hearing on Wednesday. Sales announcements will be posted in approximately three business days and notices of interest will be received between January 18 for Embed and February 1 for FTX Europe and Japan.
Sam Bankman-Fried’s crypto firm filed for bankruptcy on November 11, 2022, shortly after a report from FTX trading arm Alameda Research examined the integrity of its balance sheet. Claims linked to former senior executives and their families will be excluded from the sale, given the Department of Justice’s concerns about sales with serious allegations of misconduct.
While Bankman-Fried has denied charges, including telegram fraud, while serving as chief executive officer, his former lieutenants Caroline Ellison and Gary Wang are said to have collaborated with investigators. Now run by restructuring expert John Ray, the property hopes to generate more value for creditors by rapidly selling the more solvency and easy-to-segregate branches of the business.
