FTX Asks Court For Permission To Sell 4 Subsidiaries Including LedgerX

FTX wants to sell off 4 of its subsidiaries, including LedgerX. The reason given is that they should be sold when they are now solvency and in good standing with the regulatory authorities, before they lose more value as they fall into limbo due to FTX’s legal troubles. If approved, the sale will take place in the first quarter of 2023.

According to The Block, the current team of FTX has asked the US Federal Bankruptcy Court to authorize the auction of derivatives trading platform of FTX subsidiary LedgerX, Embed securities clearing platform, FTX Japan and FTX Europe early next year, before these companies lose all their value.

The law firm Sullivan and Cromwell explains that “the longer these firms are inactive, the greater the risk to asset value and the risk of permanent license suspension.”

Preliminary bids are due mid-January to early February, final bids are due mid-February to mid-March, and auction date is late February to late March.

Following those auctions, Judge John Dorsey of the Delaware Bankruptcy Court will hold a hearing to approve the winning bid. Objections to the proposed sale are due December 29, and a hearing on the subject is scheduled for January 11.

These proposals were rushed after the arrest of a former Sam Bankman-Fried executive on the 12th made it’s brand so toxic that it wanted to remove its subsidiaries before they are devalued by the association.

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