The new management of FTX, through the company’s lawyers, requested that the company be able to resell 4 of its subsidiaries, namely LedgerX, FTX Japan, FTX Europe and Embed Business. If this were to happen, the funds raised could be used to participate in the reimbursement of the various creditors affected by the bankruptcy of FTX.
FTX tries to save the furniture
FTX Lawyers said that the priority for the new management of the company was to sell or at least make strategic transactions concerning its few solvent subsidiaries with stable activity.
Specifically, the cryptocurrency exchange requested that 4 of its subsidiaries, namely LedgerX (formerly FTX US Derivatives), FTX Europe, FTX Japan and Embed Businesscan be sold as quickly as possible in order to limit the impact of FTX’s bankruptcy on them and thus preserve their value.
“Debtors believe that a number of these entities have solvent balance sheets, independent management and valuable franchises. […] The longer operations are suspended, the greater the risk to the value of the assets [des filiales] and the risk of permanent revocation of their licenses as well. »
The subsidiaries here concerned having been relatively recently acquired by FTX, they were able to maintain a certain financial independence, their equity consequently being separated from their parent company, namely FTX. As such, FTX Japan mentioned in particular the possibility of reinstating withdrawals for the beginning of 2023.
Assuming that potential investors are interested in these sales, for example investment funds specializing in the cryptocurrency community, sales will start on February 21, 2023 and will begin with that of Embed Business. The sales of LedgerX, then FTX Japan and Europe will take place respectively on March 7 and 21, 2023.
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Several buyers have already responded
According to the information available to date, more than a hundred entities would be interested in a possible takeover one or more of the 134 subsidiaries included in FTX’s bankruptcy proceedings. 26 confidentiality agreements have already been signed aimed at acquiring activities or assets of FTX.
The preliminary sales concerning these various subsidiaries will take place from mid-January to the beginning of February, during which period potentially interested investors must be able to provide a complete file proving their interest and their ability to finance the said acquisitions.
LedgerX could turn out to be the most coveted company amid these takeovers, with the latter reporting a particularly positive track record compared to other FTX arms. In this regard, Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC), said that LedgerX “ held more cash than all other FTX debtor entities combined “.
In the event that the various prerequisites for sale are met by a purchaser, the final sale will take place during a hearing in the bankruptcy court relating to the month of March 2023.
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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