Bankrupt cryptocurrency exchange FTX’s plans to sell cryptocurrency futures and derivatives LedgerX, among other deals, were challenged by a US official on January 3rd. an agreement with Reuters.
According to the lawsuit, US trustee Andrew Fara called for an independent investigation before any sale, claiming that valuable information related to the exchange’s bankruptcy could be hacked. The document states:
“The sale of potentially valuable causes of action against the debtor’s principals, officers and employees, or any other person or entity, shall not be permitted until a full and independent investigation has been conducted of all persons and entities who may have been involved in any wrongdoing, negligence or other prosecutable conduct.”
In an effort to recover lost funds from exchange customers, the new management of FTX It plans to sell its units in Japan and Europe along with derivatives exchange LedgerX and equity clearing platform Embed. In a filing dated December 15, attorneys representing FTX argued that the sale of these companies would increase the value of FTX.
Related: FTX Clients Want More Information About FTX’s Plans to Sell Affiliates
FTX’s attorneys also estimate that the eventual sale of the units would be much simpler, as they were recently purchased and operated independently of FTX. Auctions of the works were expected to begin in February with the sale of Embed, followed by three more auctions in March.
FTX Japan was hit with business suspensions and improvement orders in November amid the collapse of its parent company. FTX Europe too Its licenses and operations have been suspended At the request of the Cyprus Securities and Exchange Commission, Cointelegraph reported.
There are more than 110 interested in purchasing one or more of the 134 companies registered in the bankruptcy process. FTX has already entered into 26 non-disclosure agreements with counterparties.
Founder and former CEO of FTX, Sam Bankman-Fried, He pleaded not guilty to all criminal charges related to the January 3 collapse of the cryptocurrency exchange, including wire fraud, securities fraud, and campaign finance violations.
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