- Millions lost funds in FTX Collapse.
- FTX is waiting for court approval to sell off its major subsidiaries.
FTX, once one of the largest cryptocurrency exchanges, filed for bankruptcy on November 11 sending the industry and market into a bout of FUD.
FTX has requested the court to permit it to liquidate or sell its subsidiaries before they lose their value substantially.
It is important to note that the new leadership of FTX requested a federal bankruptcy judge to permit them to sell off parts of the collapsed crypto exchange at the beginning of the next year.
The attorneys representing FTX have filed a plea to start the auction process for LedgerX and stock trading service Embed, FTX Europe and FTX Japan.
On December 15, The attorneys of the law firm Sullivan and Cromwell argued on behalf of the crypto exchange on the motion filed and noted that “The longer operations are suspended, the greater the risk to the value of the assets and the risk of a permanent revocation of licences.”
LedgerX was excluded from the bankruptcy proceedings. Meanwhile, FTX US acquired it in October 2021 to expand into crypto futures and options trading.
LedgerX is registered with the US Commodity Futures Trading Commission (CFTC) as a derivatives exchange. It was the cornerstone of SBF’s efforts in Washington.
As of now, it is unclear how much LedgerX, which previously had around $303 Million in cash according to November 17, 2022 filing, may fetch in a sale.
The motion underlined, “It is a priority of [FTX] to explore sales, recapitalizations or other strategic transactions concerning such subsidiaries and assets.”
The proposed date for the auction of FTX’s four subsidiaries is between Jan-March 2023. However, the dates for the auction may vary for each subsidiary.
The court has not permitted the company to sell the properties yet, but the hearing is scheduled for January 11, 2023.
Bloomberg reported on December 2nd that LedgerX is up for sale.
Source: https://www.thecoinrepublic.com/2022/12/17/ftx-seeks-court-approval-to-sell-ledgerx-including-three-other-subsidiaries/