On December 15, lawyers representing FTX filed a motion with the US Bankruptcy Court seeking permission to put the company’s Japanese and European branches, derivatives exchange LedgerX, and stock clearing platform Embed up for sale.
Lawyers said each of the companies and branches mentioned is under pressure from regulators and a quick sales process is worth it.
“The longer transactions are suspended, the greater the risk of assets value risk and licenses permanently revoked.”
FTX Japan operations are currently suspended and are undergoing remediation activities. FTX Europe has likewise suspended licensing and operations.
The lawyers also pointed out that after the FTX exchange filed for bankruptcy on November 11, FTX businesses lost a lot of employees and customers. However, lawyers believe that if these businesses are sold as soon as possible, they can resume their operations and increase their business value.
FTX lawyers underlined that the two businesses in question were recently acquired and have been operating independently of FTX for a long time, so the process of putting them up for sale would not become too complicated.
Given the multiple bids from these businesses, auctions for these four businesses are expected to start with Embed on February 21, 2023. The other three businesses are scheduled to go up for auction the following month.
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On the other hand, more than 110 parties are said to be interested in acquiring one or more of the 134 FTX companies that went into bankruptcy proceedings.
LedgerX, in particular, was hailed as a success story during FTX’s bankruptcy proceedings, and Rostin Behnam, Chairman of the Commodity Futures Trading Commission, noted that the company is actually overshadowed by other companies within the FTX Group, holding more cash than all other FTX debtor entities combined.