FTX sells four companies from FTX empire

The lawyers representing the bankrupt FTX have permission requested to a US bankruptcy judge to sell the company’s Japanese and European affiliates, derivatives exchange LedgerX and Embed, a stock trading platform.

FTP companies

The company’s Japanese arm is currently at a standstill and subject to improvement orders before it can resume operations. In contrast, the licenses and activities of FTX Europe have been suspended.

LedgerX seems to be doing better as it has been hailed as a success story during FTX’s bankruptcy proceedings. The company is completely cut off from the other companies and it would have more cash than all other FTX entities combined.

under pressure from regulators

The lawyers note in their December 15 filing that each of these aforementioned companies is under pressure from regulators:

“The longer operations are suspended, the greater the risk that assets will lose value and potentially lose licenses permanently.”

Partly because of this, the judge could be convinced of the need to sell these companies of the FTX empire.

The lawyers have indicated that the companies in question were recently acquired and operated largely independently of FTX, which would make the potential sale process less complex. Embed will be the first company to be auctioned, namely on February 21, 2023. After this, the baton will be passed on to LedgerX, which will take place on March 7. The Japanese and European branches will both be auctioned on March 21.

FTX CEO behind bars

Earlier you could read that the ex-CEO of FTX, Sam Bankman-Fried (SBF), was arrested by the police in the Bahamas. He is suspected of committing fraud and even money laundering, among other things.

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His request for bail was later rejected by the judge. The request was based on the fact that otherwise SBF would not be able to take his medication on a regular basis. In addition, he would not be able to handle his vegetarian diet in custody. The judge therefore wanted nothing to do with this and so SBF remains behind bars.

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