The derivatives platform LedgerX, the stock-clearing platform Embed, and its regional subsidiaries, FTX Japan and FTX Europe, are among the FTX assets that will be sold.
The judge presiding over the FTX bankruptcy proceedings has given the struggling cryptocurrency exchange permission to sell some of its assets to help it pay off its creditors.
The sale of four important FTX units has Judge John Dorsey’s approval, according to a document filed in Delaware Bankruptcy Court. The assets consist of the stock trading platform Embed, the derivatives platform LedgerX, and its regional affiliates, FTX Japan and FTX Europe.
Perella Weinberg, the investment bank charged with starting the sale process and acting as the agent for FTX and its assets, is now available to interested bidders. 117 parties expressed interest in buying the FTX assets up for sale earlier this week. Before purchasing the units, these parties can access information on the assets as part of their due diligence.
On December 15, attorneys for FTX began to request a court order allowing the sale of the four units, citing the possibility of asset value loss. The licenses of FTX Europe are currently suspended, and business suspension orders have been issued for FTX Japan.
Andy Dietderich, a lawyer for FTX, claims that the troubled cryptocurrency exchange has apparently recovered almost $5 billion in cash and digital assets. According to the FTX attorney, the cryptocurrency platform is still striving to recreate its transaction history even though the exchange has recovered some assets. The overall amount of the consumer shortfall is also still unknown, according to the attorney.
Sam Bankman-Fried, the former CEO of FTX, who pleaded not guilty to all allegations, recently asserted that he did not steal money or hide billions. According to the former CEO, FTX International had $8 billion when John Ray became the company’s new CEO. Bankman-Fried said that he promised to utilize his own resources to support the task of compensating users.