Court allowed to sell FTX assets
2023.01.13 11:33
Court allowed to sell FTX assets
By Tiffany Smith
Budrigannews.com – The bankruptcy judge who is in charge of FTX has given the troubled crypto exchange permission to sell some of its assets to help it pay back its creditors.
The sale of four key FTX units has been approved by Judge John Dorsey, according to a filing in Delaware Bankruptcy Court. The derivatives platform LedgerX, the stock trading platform Embed, and its regional arms, FTX Japan and FTX Europe, are all included in the assets.
The investment bank Perella Weinberg, tasked with beginning the sale process and representing FTX and its assets, can now be contacted by interested bidders. 117 parties expressed interest in purchasing the FTX assets for sale earlier this week. Before purchasing the units, these parties can access information about the assets as part of their due diligence.
On December 15, FTX’s legal team began asking the court for permission to sell the four units, citing the possibility that the assets would lose value. Currently, FTX Europe has its licenses revoked, and FTX Japan has had business suspension orders issued to it.
Andy Dietderich, a lawyer for FTX, claims that the troubled cryptocurrency exchange has reportedly recovered approximately $5 billion in cryptocurrency and cash. The FTX attorney stated that the cryptocurrency platform is still working to rebuild its transaction history, even though the exchange has recovered some funds. The lawyer also stated that the total amount of the customer shortfall is still unknown.
Meanwhile, Sam Bankman-Fried, the former CEO of FTX who pleaded not guilty to all charges, recently asserted that he did not steal funds or stash billions. When John Ray became FTX international’s new CEO, the former CEO stated that the company had $8 billion. Additionally, Bankman-Fried stated that he would use his personal assets to support the effort to reimburse users.
