The US bankruptcy court hearing the FTX case has allowed the defunct crypto exchange to sell its business units to raise funds and pay its creditors. Among the businesses approved by the court to go under the hammer include Embed, LedgerX, and FTX’s European and Japanese operations, media reports said.
Interestingly, over 100 bidders have evinced interest in FTX’s business units, FTX told the court. FTX has over a million creditors to pay. However, the court ruling is subject to review and objections by the US Trustee, a branch of the Department of Justice (DoJ).
On Wednesday, a lawyer representing FTX told the court that the firm has so far found $5 billion in liquid assets, tokens, and cash. As of now, the total creditors’ total claim is not known. Any sale of FTX assets would add to the pool of funds the wind-up team has so far created from leftover assets of the bankrupt exchange.
Last Saturday, a US Trustee, Andrew Vara, filed objections to the FTX’s sale proposals for clearing house LedgerX and FTX’s Japan and Europe units. It also objected to the sale of FTX’s digital currency futures. Earlier last week, FTX founder and former CEO Sam Bankman-Fried (SBF) pleaded not guilty to the criminal charges brought against him.
In his court filings, Trustee Andrew Vara said the companies being planned to be sold may have information about FTX’s bankruptcy.
“The sale of potentially valuable causes of action against the Debtors’ directors, officers and employees, or any other person or entity, should not be permitted until there has been a full and independent investigation into all persons and entities that may have been involved in any malfeasance, negligence or other actionable conduct,” the filing said.
