FTX permitted to sell LedgerX, other assets by bankruptcy judge

By: Michael Wilson

FTX permitted to sell LedgerX, other assets by bankruptcy judge

January 13, 2023 9:09 PM

The derivatives platform LedgerX, the stock-clearing platform Embed, and its regional affiliates, FTX Japan and FTX Europe, are among the FTX assets that will be sold.


The judge overseeing the FTX bankruptcy proceedings has granted the beleaguered crypto exchange permission to sell some of its assets in order to help repay its creditors.


Judge John Dorsey has approved the sale of four important FTX assets, according to a petition in Delaware Bankruptcy Court. The derivatives platform LedgerX, the stock trading platform Embed, and its regional subsidiaries, FTX Japan and FTX Europe, are among the assets.


Interested bidders can now contact investment firm Perella Weinberg, which has been tasked with starting the selling process on behalf of FTX and its assets. 117 parties expressed interest in purchasing the FTX assets for sale earlier this week. These parties can obtain information on the assets as part of their due diligence prior to purchasing the units.


On December 15, lawyers for FTX began seeking court approval to sell the four units, citing the concerns of asset value loss. FTX Europe's licenses are currently suspended, while FTX Japan has received business suspension orders.


According to FTX lawyer Andy Dietderich, the troubled crypto exchange has purportedly recovered roughly $5 billion in cash and coins. While the exchange has recovered some monies, the FTX attorney stated that the crypto platform is still striving to restore its transaction history. Furthermore, the actual amount of the consumer deficiency is unknown, according to the lawyer.


Meanwhile, former FTX CEO Sam Bankman-Fried, who has pled not guilty to all criminal allegations, recently maintained that he did not steal or hide billions of dollars. According to the outgoing CEO, FTX International had $8 billion when its new CEO, John Ray, came over. Bankman-Fried has committed to utilize his personal assets to help with the endeavor to reimburse users.