In FTX's effort to obtain funds to repay its creditors, Bankruptcy Judge John Dorsey has given the company permission (1) to sell four of its most important units.
Because of this, the defunct exchange is now in a position to sell off perhaps its FTX Europe, FTX Japan, its derivative products arm LedgerX, and Embed, which was its stock-clearing platform. FTX Japan was the exchange's largest subsidiary.
The investment company Perella Weinberg is going to be in charge of supervising the sell-offs.
After presiding over a hearing on Wednesday, Judge Dorsey issued the order the following day, on Thursday. Per the order, sales notifications will be made accessible to the general public within three days of the workweek.
"The Sale Hearing(s) shall be held in the United States Bankruptcy Court for the District of Delaware, Courtroom 5, 824 North Market Street, 5th Floor, Wilmington, Delaware 19801, on the following dates, at times to be determined, or as soon thereafter as the Debtors may be heard: (i) February 27, 2023 for the Embed Business, (ii) March 13, 2023 for the LedgerX Business, and (iii) March 27, 2023 for the FTX Japan Business and the FTX Europe Business;"
Between January 18 and February 1, however, prospective purchasers can express their interest in the property formally.
Documents submitted to the court reveal an intriguing fact: more than 117 prospective purchasers have already expressed interest in the sell-offs. But within the allotted window, we also anticipate the participation of many more people.
FTX Planning a Speedy Sale of its Units Shortly
Before it declared bankruptcy on November 11, 2022, the FTX exchange was a dominant player in the crypto currency sector. However, it is no longer in business. Shortly after revelations arose concerning irregularities in the financial statements of FTX trading arm Alameda Research, the crypto empire fell apart and eventually wholly collapsed.
Since it was forced to file for bankruptcy, FTX has been partially looking for ways to return its debts to creditors. So, the company has decided that the most profitable aspects of its operation should be liquidated as soon as possible.
During this time, the Department of Justice has expressed some concerns regarding the forthcoming sales. The Department of Justice considers the claims of wrongdoing against some of the company's highest-ranking executives.
Therefore, it is adamant that any claim connected to former senior executives and their families would not be a part of the transaction in any way, shape, or form. At the very least, for the time being, such facts have not yet been proven. In addition, FTX complies with the Department of Justice's request and guarantees that claims of this nature will not be included.
However, as of right now, former FTX CEO Sam Bankman-Fried has maintained his innocence about the charges that have been brought against him. It is also believed that his former business partners, Caroline Ellison & Gary Wang, are providing investigators full cooperation.