FTX wants permission to sell FTX Japan and FTX Europe as well as LedgerX
The four businesses FTX wants to sell had only recently been acquired, and lawyers argue this simplifies the sale process.
On Dec. 15 lawyers representing FTX filed a motion with the United States Bankruptcy Court seeking permission to sell off the firm’s Japanese and European branches, derivatives exchange LedgerX and stock-clearing platform Embed.
The lawyers note that each of these businesses have been under pressure from regulators, which “merit[s] an expeditious sale process,” adding:
“The longer operations are suspended, the greater the risk to the value of the assets and the risk of a permanent revocation of licenses.”
FTX Japan is currently subject to a business suspension and improvement orders, while FTX Europe has had its licenses and operations suspended.
They also point to the loss of customers and employees the businesses have experienced since FTX filed for bankruptcy on Nov. 11, and believe selling these businesses now would allow the resumption of operations and therefore maximize value to the FTX estate.
The lawyers said these businesses were recently acquired and have been operating relatively independently of FTX, which would make a potential sale process much less complex.
Assuming there is more than one potential bidder the auctions for the businesses would start with Embed on Feb. 21 2023, with the other three occurring the following month.
Related: FTX Bahamas co-CEO Ryan Salame blew the whistle on FTX and Sam Bankman-Fried
More than 110 parties are said to be interested in purchasing one or more of the 134 companies included in the bankruptcy proceedings, and FTX has already entered into 26 confidentiality agreements with counterparties interested in the businesses or assets of FTX.
LedgerX in particular has been hailed as a success story during the bankruptcy proceedings of FTX, with Commodity Futures Trading Commission Chairman Rostin Behnam noting that the firm had essentially been “walled off” from other companies within FTX Group, and “held more cash than all the other FTX debtor entities combined.”
FTX wants to sell off parts of its failed crypto empire before they lose too much of their value or have their licenses permanently revoked, arguing it is in the best interests of all stakeholders.
