The judge charged with overseeing bankruptcy proceedings has given troubled cryptocurrency exchange FTX approval to sell some of its assets to help its efforts to pay down its debt.
According to a Delaware bankruptcy court filing, Judge John Dorsey approved the sale of four major units of FTX. 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, which is responsible for initiating the sale process, representing FTX and its assets. Earlier this week, 117 parties expressed interest in buying FTX assets for sale. These parties may access information about assets as part of their due diligence before purchasing units.
Attorneys representing FTX began seeking court permission to sell the four units on Dec. 15, citing risks of loss in the value of the assets. Currently, FTX Europe’s licenses are suspended, while FTX Japan is under suspension orders.
The ailing cryptocurrency exchange has reportedly recovered about $5 billion in cash and cryptocurrency, according to FTX attorney Andy Dietdrich. FTX’s lawyer said that while the exchange has recovered some of the funds, the crypto platform is still working to rebuild its transaction history. In addition, the lawyer said that the total amount of the client’s disability is still uncertain.
Meanwhile, former FTX CEO Sam Bankman-Fried, who has pleaded not guilty to all criminal charges, recently claimed he did not steal the money or hide the billions. The former CEO said FTX International was worth $8 billion when its next CEO, John Ray, took over. Bankman-Fried also said it has pledged to use its personal assets to help with users’ repayment efforts.