Home » FTX gets approval to sell 4 of its largest subsidiaries

FTX gets approval to sell 4 of its largest subsidiaries

by Patricia

FTX, which recently managed to raise more than $5 billion in assets to pay off its creditors, has received approval to sell four of its most important subsidiaries. The latter have been suspended since FTX’s bankruptcy, and their sale will maximise FTX’s gains for its creditors.

FTX continues to recover funds

A bankruptcy judge in Delaware court has granted FTX the right to sell 4 of its largest units, namely LedgerX, Embed, FTX Europe and FTX Japan. This is good news for the exchange and its creditors, especially as the new management has already managed to raise $5 billion in assets, far more than originally planned.

The United States Trustee Program, a section of the Department of Justice, had initially opposed any possibility of a resale as the FTX group was under investigation in its entirety. However, the agency eventually agreed, although it remains willing to review and object to the various sale processes.

According to the group overseeing the liquidation of FTX, more than 117 entities have already shown interest in buying one or more of the subsidiaries involved.

The management of the various sales has been entrusted to Perella Weinberg, a New York-based investment bank founded by Peter Weinberg, former CEO of Goldman Sachs. The sales will take place in the form of auctions and will be held at dedicated hearings after the call for expressions of interest has closed.

Financials still unclear

At the time of writing, the total amount of FTX’s receivables remains unclear. At the time of its bankruptcy filing, the company estimated that it owed between $1 billion and $10 billion to its various creditors, which in turn are estimated to be around $1 million.

While FTX continues to raise recoverable funds, the new management of the exchange continues to compile the various trading histories of the platform in order to determine the amount of money owed.

However, Sam Bankman-Fried, who is still at large despite the damning files that have been raining down for the past two months, recently spoke out via Substack, claiming that he had sold FTX to current CEO John Ray III with over $8 billion in positive assets.

A statement that of course only commits SBF himself, the latter adding that the various figures given in his blog post are more or less transmitted “from memory”.

Furthermore, the former FTX CEO did not hesitate to state that it was “ridiculous” that the exchange’s American customers had not yet been reimbursed, and went so far as to say that with a few more weeks, all of the exchange’s users around the world would have been able to recover their funds. This is still his own opinion,

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