FTX Seeks Court’s Consent to Sell Four of its Subsidiaries

The Bankrupt Exchange FTX once valued at $32 billion is seeking consent from the United States bankruptcy court to sell out four of its businesses that were recently acquired before its collapse.

According to the release today, the collapsed exchange wants to sell off its Embed, FTX Japan, FTX Europe, and LedgerX to interested buyers. This move comes shortly after Sam Bankman-Fried got arrested and denied parole by the Bahamas at the request of the United States.

Meanwhile, the four businesses have been facing a lot ever since their parent company collapsed, leading to bankruptcy fillings. The new CEO of the exchange is of the opinion that the businesses should be sold off now as their value has not depreciated.

Interestingly, there are over 100 unsolicited bidders for the four entities, although the firm needs the court’s permission to auction out before anything can be done. Moreso, once the court gives approval, the company will in turn start accepting bids from February and March 2023.

Notably, Embed business will be the first to be auctioned out come February 2023, followed by LedgerX in March, then FTX Japan and FTX Europe will follow suit.

Interested buyers will have to meet up with the requirements, ranging from submission of specific documents before due dates, and securing regulatory approvals to the provision of proof to show that they can bid.

Crypto Firms and Investors lick Their Wounds After FTX’s fall

After FTX’s fall from grace and file for bankruptcy, there have been a series of cascading negative effects for the nascent industry, especially for crypto firms with exposure to the collapsed exchange.

Undoubtedly, due to the size of FTX before its fall, several crypto companies had some level of relationship with the firm, and these firms have suffered varying degrees of losses due to their level of exposure to the now-bankrupt firm.

Just recently, crypto derivative platform Paradigm, while citing the contagion that followed the collapse of FTX, slashed the salaries of all its employees by 15%. Also, Temasek joined several other investors to write down its investment in FTX saying its trust in FTX and SBF appeared to have been misplaced.