Cointime

Download App
iOS & Android

FTX Japan to Be Sold, Final Bid Deadline March 15 2023

Validated Individual Expert

FTX Trading has filed a motion with the bankruptcy court in Delaware to be granted permission to sell four of its solvent and independently operating subsidiaries, which include Embed Technologies, LedgerX LLC, and FTX Europe in addition to FTX Japan.

The following extracts the relevant parts from the motion, edited for readability.

FTX Japan Business: FTX Japan Holdings is the holding company for its wholly-owned subsidiaries FTX Japan, which operates a registered cryptocurrency exchange providing residents of Japan the ability to trade crypto and crypto derivatives, and FTX Singapore, which operates a cryptocurrency exchange in Singapore under exemption while its license application is being processed, among certain other subsidiaries with limited operations.

FTX Japan is subject to the regulatory supervision of the Financial Services Agency of Japan (the “JFSA”) and is registered as a Crypto-Asset Exchange Service Provider and Type I Financial Instruments Business Operator. Previously known as Liquid Group Inc., FTX Japan Holdings was acquired in April 2022 by FTX Trading, which continues to directly own 100% of the equity interests of FTX Japan Holdings. The Debtors are soliciting bids for the disposition of the FTX Japan Business, which may involve a sale of 100% of the interests in FTX Japan Holdings held by FTX Trading or separate sales of 100% of the interests in FTX Japan or FTX Singapore held by FTX Japan Holdings.

Since the commencement of these Chapter 11 Cases, each of the Businesses has experienced regulatory pressures which merit an expeditious sale process. The Debtors and/or the Businesses have been in active conversations with a number of regulators for the Businesses, including FINRA with respect to Embed, the CFTC with respect to LedgerX’s registrations as a DCM, SEF and DCO, the JFSA with respect to FTX Japan, and the Swiss Financial Market Supervisory Authority (“FINMA”) and the Cyprus Securities and Exchange Commission (“CySEC”) with respect to FTX Europe. The licenses held by FTX Europe have been suspended along with its operations, and FTX Japan is subject to business suspension and business improvement orders. The longer operations are suspended, the greater the risk to the value of the assets and the risk of a permanent revocation of licenses.

Because each of the Businesses was acquired by the Debtors fairly recently, but before the Debtors commenced these Chapter 11 Cases, the Businesses have each operated on a generally independent basis from the Debtors’ other operations, holdings and investments. Each of the Businesses has maintained segregated customer accounts. In addition, each of the Businesses has a separate management team from the Debtors’ other businesses, Embed, LedgerX and FTX Europe each maintain separate IT systems and Embed, FTX Europe and FTX Japan Holdings each maintain separate headquarters. The relative independence of each of the Businesses’ operations from the remainder of the Debtors’ core business operations make a potential sale process for each of the Businesses relatively less complex.

Preliminary Bid Deadline: February 1, 2023

Final Bid Deadline: March 15, 2023

Auctions (provided more than one qualified bid): March 21, 2023

Sale Hearing: March 27, 2023

Comments

All Comments

Recommended for you

  • U.S. consumer confidence improves again in November, reaching a two-year high

    Dana M. Peterson, Chief Economist of the World Large Enterprises Federation, said, "US consumer confidence continued to improve in November, reaching the highest level in the past two years. The growth in November was mainly due to consumers' more positive assessment of the current situation, especially in the labor market. Compared with October, consumers' optimism about future employment opportunities has also greatly increased, reaching the highest level in nearly three years. At the same time, consumers' expectations for future business conditions have not changed, while their optimism about future income has slightly declined." Earlier, the US Conference Board Consumer Confidence Index for November recorded 111.7, a new high since July 2023.

  • Starknet: Phase 1 of STRK staking is now live on the mainnet

    Starknet announced that the first stage of STRK staking has officially launched on the mainnet.

  • CZ: Not trying to end the meme craze, just encouraging more builders

    CZ posted on X platform today, saying: "I am not against Meme coins, but Meme coins have become 'a little' strange now. Let's use blockchain technology to build practical applications." Some community users said that even Musk is a supporter of Meme coins, and it is very difficult to end this frenzy. CZ responded that "there is no attempt to end anything, everyone has the right to choose to invest or hold what they want. Just encourage more builders."

  • Talus Network Completes $6 Million Strategic Round of Financing with a Valuation of $150 Million

    decentralized AI protocol Talus Network raised $6 million in a strategic financing round led by Polychain Capital, valuing the company at $150 million. This funding will help further develop the Talus ecosystem, including the Protochain, Nexus framework, and "AI dating experience" application.

  • AXIOS: Trump is considering appointing a secretary of state for artificial intelligence

    according to AXIOS, Trump is considering appointing an AI minister to coordinate federal policies and government use of emerging technologies.

  • Coinbase International has launched COW perpetual contracts

     Coinbase International has launched COW perpetual contracts. COW-PERP market limit, market, stop loss, and stop loss limit orders are now all available.

  • Schuman Financial Completes $7.36 Million Seed Round, Led by RockawayX

    Schuman Financial has completed a $7.36 million seed round of financing, led by RockawayX, with participation from Lightspeed Faction, Kraken Ventures, Nexo Ventures, Gnosis VC, Delta Blockchain Fund and Bankless Ventures. In addition, Schuman Financial has launched a euro stablecoin, EURØP, which complies with the MiCA standard.

  • QCP: BTC's path to $100,000 has stalled, and ETH implied volatility has turned to put options

    QCP Capital has published an analysis indicating that the recent drop in the price of Bitcoin has resulted in long liquidations exceeding $430 million. This drop coincides with the end of five consecutive days of net inflows for spot ETFs, which recorded a outflow of $438 million on Monday, while MicroStrategy fell by 4.4%. With the US holiday approaching and no immediate catalyst to push prices higher, BTC's path towards $100,000 has stalled. In addition, the implied volatility of ETH has turned to bearish options rather than bullish options, and market concerns about downside risks may intensify, especially with the release of the FOMC meeting minutes and PCE data. However, in the long run, this market decline is not an excessive correction. Bitcoin has only retreated to last week's level. Since Trump's election, the market has become extremely overbought and leveraged, so a pause is inevitable.

  • Binance will delist GFT, IRIS, KEY, OAX, and REN

     Binance will delist the following trading pairs on December 10, 2024: GFT/USDT, IRIS/BTC, IRIS/USDT, KEY/USDT, OAX/BTC, OAX/USDT, REN/BTC, and REN/USDT. Additionally, Binance Futures will close all positions and automatically settle the KEYUSDT and RENUSDT USDⓈ-M perpetual contracts on December 3, 2024 at 09:00 (UTC). After the settlement is completed, the contracts will be delisted.

  • OpenTrade announces $4 million seed extension round led by AlbionVC

    OpenTrade has announced the completion of a $4 million seed extension financing round to build RWA-supported loan and stablecoin yield products. This round of financing was led by AlbionVC, with participation from a16z Crypto and CMCC Global. OpenTrade plans to use the funds to expand its operations and enhance its product capabilities.