Bankrupt crypto exchange FTX filed a motion with the Bankruptcy Court in Delaware to sell off four of its solvent businesses. These include crypto derivatives trading platform LedgerX, stock clearing business Embed, FTX Japan, and FTX Europe.
FTX claimed that it acquired these entities recently, with each unit operating independently from FTX’s other subsidiaries, adding,
“Embed, LedgerX and FTX Europe each maintain separate IT systems and Embed, FTX Europe and FTX Japan Holdings each maintain separate headquarters.”
In its court filing, the embattled firm stated that the four business units have experienced significant reductions in its employees and customers in recent days. FTX noted that all four units hold licenses from their respective regulators. Therefore, suspending operations could result in the permanent revocation of licenses besides lowering the value of assets.
FTX reasoned that client and employee attrition will continue as long as the firms are owned by it. It concluded that selling these entities will allow them to resume operations and “maximize the value of [FTX’s] estates.” It also requested the court to assign a Stalking Horse Bid for each business to ensure a fair sale price during the auction.
The court filing revealed that FTX received inquiries from 111 counterparties that seek to acquire its assets. Furthermore, FTX has entered into confidentiality agreements with 26 interested parties.
FTX has chosen December 29 as the last day for filing objections against this request, with the court hearing scheduled for January 11, 2023.
