In accordance with a recent bankruptcy law, FTX was given permission to sell all four major units including derivatives arm and securities clearing house Embed, along with FTX’s Japanese and European units. The court was hearing the bankruptcy case yesterday, Thursday, January 12, in the Delaware District.
Court allows FTX to sell subsidiaries in Japan and Europe
Perella Wienberg, an investment bank, was allowed to start selling which has already attracted 117 interested buyers, so far.
After a hearing last Wednesday, Judge John Dorsey, who is responsible for overseeing the FTX exchange’s liquidation, approved the proceedings in an order dated Thursday. Within three working days, notices of the sale will be issued. Also, declarations of interest for FTX Europe, Japan, and Embed must be submitted between February 1 and January 18, respectively.
Can the Bankman Fried family be part of FTX sales ?
Due to concerns from the Department of Justice, there were material allegations of wrongdoing involving former executives and their families, who would be excluded from the sale.
By quickly selling off the more financially stable parts and outright spinning off parts of the company, the estate, now under John Ray’s direction, intends to increase value to creditors.
The collapse of Sam Bankman Fried’s empire
FTX has filed for bankruptcy on November 11, 2022 in the United States Court. Founder and former CEO, Sam Bankman Fried, has been variously criticized by the Securities and Exchange Commission (SEC) for financial crimes such as fraud, money laundering, and campaign violations.
However, Bankman -Fried has pleaded not guilty while two members of his inner circle, Caroline Ellison and Gary Wang, have accepted their crime and are cooperating with US prosecutors.