The United States Bankruptcy Court received a request from FTX’s legal team on Dec. 15 asking for authorization to sell the company’s European and Japanese operations, LedgerX derivatives exchange, and Embed stock-clearing platform. The attorneys state that these companies have experienced regulatory pressure, which “merits[s] an expedited sale procedure.
According to them, the danger to the value of the assets and the threat of a lasting revocation of licenses increases with the length of the operations suspension. The attorneys said that because these companies were recently bought and had been mainly functioning independently of FTX, the request to sell them would be a lot simpler procedure.
If there are several interested parties, the Embed stock-clearing platform would be the first business up for auction on February 21, 2023, followed by the other three the following month.
LedgerX was the only good thing about FTX
The 134 firms involved in the bankruptcy procedures are claimed to be attractive to more than 110 parties, and FTX has already signed 26 confidentially agreements with parties interested in FTX’s businesses or assets.
Particularly during the FTX bankruptcy proceedings, LedgerX has been hailed as a success story. Rostin Behnam, chairman of the Commodity Futures Trading Commission, noted that the company had essentially been “walled off” from other businesses within the FTX Group and held more cash than all the other FTX borrower entities combined.
FTX claims it is in the best interest of the stakeholders to sell off a portion of its bankrupt cryptocurrency enterprise before it loses too much of its value or has its licenses permanently revoked.
More on LedgerX
The U.S. Commodity Futures Trading Commission (CFTC), which recently declared ETH a commodity, has given the institutional trading and clearing platform LedgerX, a division of NYBX, permission to trade straightforward swaps and options on virtual currencies. As a swap execution facility (SEF) and derivatives clearing company, LedgerX is registered with the CFTC (DCO). FTX.US purchased LedgerX on August 31, 2021. The deal’s financial details weren’t made public.