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Bankrupt FTX Seeks Court Approval to Sell FTX Japan, FTX Europe, Embed and LedgerX

Validated Media

FTX’s image might have been irreversibly damaged after its collapse in November and the eventual arrest of its founder and former CEO, Sam Bankman-Fried, in the Bahamas earlier this week.

The depreciating reputation of the company could harm the many businesses it owns. Therefore, lawyers representing the company have requested the US bankruptcy court for the District of Delaware to allow the sale of four solvent business units before they lose additional value due to being non-operational.

FTX’s lawyers from law firm Sullivan and Cromwell have filed a motion to begin the sale process of four FTX subsidiaries: FTX Japan, FTX Europe, the digital currency derivatives platform LedgerX and the stock trading service Embed.

FTX Japan, FTX Europe, LedgerX and Embed Could Get Their Licenses Revoked

In addition, FTX’s lawyers pointed out that the four businesses remain registered and regulated in various jurisdictions. Embed is registered with the US Securities Exchange Commission; the Commodity Futures Trading Commission regulates LedgerX; FTX Japan is registered with the Financial Services Agency of Japan, and FTX Europe holds a license (currently suspended) as an investment firm allowing it to provide its services in the European Union member states.

‘The longer operations are suspended, the greater the risk to the value of the assets and the risk of a permanent revocation of licenses,’ said the lawyers.

Selling and Restarting the Businesses Could Benefit the Debtors’ Estates

Furthermore, the lawyers argued that if the four FTX businesses were sold, there was a greater chance of them restarting operations and maximising ‘the value of the Businesses to the Debtors’ estates.’

All four companies were also recently acquired by FTX and have generally existed as independent units separate from the debtors in operations, holdings and investments.

‘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,’ the request explained.

Important Dates for the Sale Proposal

Individuals or entities wishing to object to the proposal to sell the four FTX companies have until December 29th to have their opinions heard. A hearing for considering the sales is scheduled for January 11th, 2023.

(By John P. Njui)

Related News: 

FTX News: US DOJ Appoints Creditor’s Committee, SBF Files New Bail Request

Top U.S. Rep Makes Shocking Claims, Says SEC Arrested SBF to Stop Congressional Hearing

SBF’s Bahamian Prison Reported for ‘Harsh’ Conditions and ‘Degrading Treatment’

Bahamian Government Officials Allegedly Asked SBF to Mint Millions of Dollars in New Tokens

SEC Charges FTX CEO SBF for Defrauding Investors a Day After His Arrest

FTX's Bahamas Liquidators Seek to Exclude Over $200M Worth of Luxury Properties From Liquidation

What Media Has Sam Bankman-Fried Invested in Other Than The Block? Here Is a List

FTX Token FTX Token $2.28
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