The judge overseeing FTX’s bankruptcy proceedings has authorized the embattled cryptocurrency exchange to sell some of its assets to help it pay off its creditors.
According to a filing in the Delaware Bankruptcy Court, Judge John Dorsey has approved the sale of four key FTX units. Assets include derivatives platform LedgerX, equity trading platform Embed, and its regional arms FTX Japan and FTX Europe.
Interested bidders can now contact investment bank Perella Weinberg, in charge of initiating the sale process, on behalf of FTX and its assets.. Earlier this week, 117 parties expressed interest in acquiring the FTX assets for sale. These parties may access information regarding the assets as part of their due diligence prior to purchasing the units.
Lawyers representing FTX began asking the court for permission to sell the four units on December 15, citing the risks of loss of asset value. Now, FTX Europe has its licenses suspended, while FTX Japan has been subject to stop-business orders.
The embattled cryptocurrency exchange reportedly recovered around $5 billion in cash and cryptocurrencies, according to FTX attorney Andy Dietderich. FTX’s lawyer said that while the exchange has recovered some funds, the cryptocurrency platform is still working to rebuild its transaction history. In addition, the full amount of the client’s shortfall remains unclear, the attorney said.
Meanwhile, former FTX CEO Sam Bankman-Fried, who has pleaded not guilty to all criminal charges, recently claimed he did not steal funds or hide billions. The former CEO claimed that FTX International had $8 billion in hand when its next CEO, John Ray, took over. Bankman-Fried also said he was pledging to use his personal wealth to help reimburse users.
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