Cryptocurrency exchange FTX has been approved to start selling some of its business as part of the bankruptcy process it has been facing since November 2022. The company, founded by Sam Bankman-Fried, aims to raise more money to compensate clients affected by the crash from the exchange.
According to Judge John Dorsey, in a decision made last Thursday (12), FTX may begin the auction process for its subsidiaries in the coming days.
As reported by CriptoFácil, in December of last year, FTX asked a Delaware bankruptcy court for permission to sell some of its subsidiaries. This includes, for example, the American derivatives Arm LedgerX, FTX Europe and FTX Japan. At the time, the FTX movement highlighted that many of its entities “have solvent balance sheets, independent management, and valuable franchises.”
As the team overseeing the FTX liquidation reported to the bankruptcy court, FTX has already received more than 100 “unsolicited offers” from affiliates. In addition, the team asserted that the approval of these sales would benefit FTX’s creditors.
Under the new decision, investment banker Perella Weinberg has been authorized to begin the process of selling the four companies. The process can be by auction, bid and hearing of sales, with permission for any actual transaction to take place at a later date.
Sale announcements will be available in approximately three business days, CoinDesk reported. Interest nominations will be received between January 18th for Embed and February 1st for FTX Europe and FTX Japan.
FTX recovers R$26 billion in cash, cryptocurrency, and bonds
FTX filed for bankruptcy protection on November 11, 2022. It is estimated that the company currently owes users and investors more than $8 billion.
Last week, FTX reported that it had recovered more than $5 billion in cash, cryptocurrency, and liquid securities. In fact, this equates to about R$26 billion. The one who provided the information was the attorney representing Sam Bankman-Fried (SBF).
“We have identified more than $5 billion in cash, liquid cryptocurrency, and liquid investment securities,” Andy Dittderich, an attorney for FTX, told a US bankruptcy judge in Delaware on Wednesday.
It should be noted that this $5 billion figure does not include the $450 million (2.3 billion R$) worth of cryptocurrency held by the Bahamas Securities and Exchange Commission. The attorney also told the hearing that FTX plans to sell non-strategic investments with a book value of $4.6 billion. That is just over R$23.90 at the current exchange rate of the Real.