US Court Approved For FTX To Sell 4 Subsidiaries

Key Points:

• The US court has allowed FTX to sell four of its subsidiaries.
• Investment bank Perella Weinberg is now allowed to continue selling after about 117 companies were interested in buying the FTX business.

A US court has allowed bankrupt crypto company FTX to sell four of its subsidiaries, according to an order issued by Judge John Dorsey of the Delaware Bankruptcy Court on January 12.

Sale notices will be published within three business days, with indications of interest to be received between Jan. 18 for Embed and Feb. 1 for FTX Europe and Japan.

Investment bank Perella Weinberg is now authorized to conduct a sell-off, including for the European and Japanese units of the crypto exchange, and has attracted as many as 117 expressions of interest.

The four valuable entities mentioned in it include:

• US derivatives exchange LedgerX.
• Embed Securities Trading Service.
• FTX Japan (FTX branch in Japan).
• FTX Europe (FTX Europe branch).

These four branches are relatively independent of the FTX exchange. LedgerX is one of the few sub-forks that are still liquid, and it started selling itself in early December last year. Meanwhile, the FTX Japan branch is about to complete its debt repayment obligation for customers in the land of the rising sun.

Previously, the new management of the FTX exchange petitioned the court to ask permission to sell off its subsidiaries before they were devalued.

Claims involving former senior executives and their families will be excluded from the sale due to the Justice Department’s concerns about the deal when there are allegations of serious misconduct. Bankman-Fried has pleaded not guilty to charges including wire fraud while serving as chief executive. At the same time, his former deputies, Caroline Ellison and Gary Wang are believed to be cooperating with investigators.

Currently, the lawsuits related to the collapse of FTX are still very complicated. The alleged mastermind of the violations brought by US prosecutors, Sam Bankman- Fried, has yet to plead guilty.

In a recent Coincu News article reporting that FTX had recovered $5 billion high-liquid assets, including crypto and cash, the hopes of compensation for FTX victims were once again rekindled.

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