FTX given the green light to sell four key business units

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Crypto Regulation
FTX given the green light to sell four key business units

A Delaware bankruptcy Judge, John Dorsey, has allowed FTX to sell four business units. The sale includes LedgerX and three other business units as the company seeks to reimburse its creditors.

In a ruling made on Jan. 13, the judge authorized FTX to solicit bids and sell the four separable sections of its business. These include the stock-clearing platform Embed and the derivatives arm LedgerX. The others are FTX Japan Holdings and FTX Europe businesses. 

The court ruled that the auctioneer, investment bank Perella Weinberg, is to be contacted by any interested bidders. As of the end of last week, around 117 parties had shown some interest in buying the FTX units. The bankruptcy court made this order after the Wednesday hearing.

The business units for sale

Embed Clearing LLC is included in the auctioneer’s list. This company is a stock-clearing and custody platform. The business provided APIs and brokerage services to registered investment advisors, broker-dealers, and other financial institutions. 

On the other hand, LedgerX is a clearinghouse and an exchange for digital currency futures and options. The Commodity Futures Trading Commission regulates this business.

FTX Japan Holdings includes FTX Japan, a crypto exchange where Japan residents can trade cryptocurrency and its derivatives. It also includes FTX Singapore, a crypto exchange in Singapore.

The FTX Europe unit includes a Swiss corporation, Debtor FTX Europe AG. It is a holding company for several operating and non-operating FTX subsidiaries, including its digital assets and derivatives business.

The case against Sam Bankman-Fried is set to begin trial this October as the FTX bankruptcy team is increasing its efforts to liquidate the company’s holdings. It has uncovered around $5 billion by now, which is still short of the $8 billion that was projected to be owed by the company.

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Samuel Mbaki Wanjiku

Samuel is an adventurous person who likes to explore topics in-depth and learn new things each day. His passion lies in gaining knowledge to help transform the world through his writing skills. He also believes in blockchain technology and its potential to usher in a cashless society. Currently, he is pursuing a Computer Science Bachelor’s degree driven by his fascination with emerging technologies. He has writing experience of about three years in different fields and two in blockchain technology.