Bankruptcy Court Allows FTX To Sell Key Subsidiaries and Assets

  • Judge John Dorsey has authorized the sale of four key subsidiaries of FTX.
  • This week, 117 potential buyers showed interest in acquiring the FTX assets.

The bankruptcy court supervising FTX’s case has allowed the troubled cryptocurrency exchange permission to liquidate some of its assets in an attempt to repay its creditors.

According to paperwork submitted to the Delaware Bankruptcy Court. Judge John Dorsey has authorized the sale of four key subsidiaries of FTX. LedgerX, Embed, and their regional offshoots FTX Japan and FTX Europe are all part of the assets.

Potential Buyers Line Up

To express interest in purchasing FTX and its assets, potential buyers should get in touch with the investment firm Perella Weinberg, which has been charged with initiating the selling process. This week, 117 potential buyers showed interest in acquiring the FTX assets. As part of their due diligence before purchasing the units, these parties have access to details on the underlying assets.

On December 15th, FTX’s attorneys filed a motion asking the court to allow the sale of the four units, despite the potential for a decrease in value. FTX Europe has had its licenses revoked, while FTX Japan has been hit with injunctions against operating.

Andy Dietderich, a lawyer for FTX, claims that the cryptocurrency exchange has recouped almost $5 billion in cash and cryptocurrencies. According to the FTX lawyer, the cryptocurrency platform is still striving to recreate its transaction history, even if it has recovered some assets. Further, the lawyer said that the whole extent of the customer shortage was unknown.

Meanwhile, ex-FTX CEO Sam Bankman-Fried has maintained that he did not steal money or hide billions, despite pleading not guilty to all criminal allegations. Bankman-Fried said that he will contribute his own money to help pay back customers.

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