• FTX is allowed to sell off four key units, including LedgerX, to repay creditors
• Sales notices will be made available to the public within three working days and buyers can begin to express their interest between January 18 and February 1
• Court documents show that over 117 buyers have expressed their interest in the sell-off
FTX, a major force in the crypto industry, has been granted clearance by bankruptcy judge John Dorsey to sell off four of its key units in a bid to raise funds to repay creditors. The four units in question are FTX Europe, FTX Japan, its derivatives arm LedgerX, and Embed – its stock-clearing platform. The sell-offs will be overseen by investment bank Perella Weinberg.
Judge Dorsey issued the order on Thursday following a Wednesday hearing. According to the order, sales notices will be made available to the public within three working days, allowing interested buyers to officially express their interests between January 18 and February 1. Court documents show that more than 117 buyers have already expressed their interest in the sell-off, with many more expected to join during the stated timeframe.
FTX filed for bankruptcy in November 2020, shortly after a period of rapid expansion and acquisitions. The exchange had been expanding its operations to countries like Japan, Europe, and the United States, and had also acquired LedgerX, a derivatives trading platform. Unfortunately, these efforts did not pay off, leading to the filing of bankruptcy.
FTX is now looking to offload these units to raise the funds it needs to repay creditors. The exchange has chosen Perella Weinberg, an investment bank, to oversee the sell-off process. This firm will be responsible for distributing the sales notices to the public, as well as managing the interest expressed by buyers.
The sell-off process is expected to go smoothly, with the majority of the interested buyers expected to make their bids before the February 1 deadline. Once the bids are received and reviewed, the chosen buyer will be announced and the process of transferring the units will begin.
It remains to be seen how much FTX will be able to raise from the sale of these units. However, it is clear that the exchange is doing all it can to make the best of the situation and repay creditors as quickly as possible.