FTX wants permission to sell FTX Japan, FTX Europe and LedgerX

The attorneys representing FTX want permission from the US bankruptcy court to sell some companies from the FTX portfolio. These are the Japanese and European branches of the exchange, the derivatives exchange LedgerX and the clearing house Embed.

under pressure from the authorities

FTX’s lawyers note that the segments of the company’s portfolio they want to sell are under pressure from local authorities. “The longer operations are suspended, the greater the risk of assets losing value and potentially losing licenses permanently,” the lawyers said. That would be a bad thing for FTX’s creditors, which could convince the judge of the need to sell the industries.

The Japanese branch of the company is currently at a standstill and needs to improve certain things before it can continue its operations. In Europe, all of the company’s licenses and operations have been suspended. The lawyers also point to the loss of customers and employees that the company has had to swallow since the bankruptcy on November 11. Permission to sell these companies would maximize value and allow operations to restart, the lawyers said.

Independent of FTX

According to the lawyers, the companies in question were recently acquired and operate largely independently of FTX. That should make the potential sales process a lot less complex. Assuming there are several potential buyers, the Embed auction will start first on February 21, 2023. LedgerX will follow on March 7, followed by auctions of FTX Japan and FTX Europe on March 21.

More than 110 parties have already indicated their interest in acquiring 1 or more of the 134 companies that fall within the portfolio of FTX. According to rumors, FTX has already made confidentiality agreements with 26 parties.

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LedgerX in particular appears to be a success story. The company is completely cut off from the rest of the portfolio and appears to have more cash on hand than all other FTX entities combined. Now FTX wants to sell a large part of its empire as soon as possible, before it loses too much value or the licenses are suspended.

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