FTX’s new leadership has requested federal bankruptcy judge approval to begin selling off four of its businesses including LedgerX, by the early months of 2023.
What Happened: Lawyers for FTX (CRYPTO: FTT) filed a motion to initiate an auction process for digital currency derivatives platform LedgerX, stock trading service Embed, FTX Japan, and FTX Europe.
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LedgerX, recently acquired by FTX, was believed to be the only part of its corporate family to remain liquid during the difficult times faced by parent company FTX and its affiliated investment fund Alameda Research.
Company lawyers suggest that selling off the other affiliates could help protect them from further staff losses and safeguard their good standing with regulators, as their business operations remain separate and solvent even in the face of FTX's struggles.
"Based on their preliminary review, the Debtors own or control a number of subsidiaries and assets that are regulated, licensed and/or largely not integrated into the Debtors’ operations, within and outside of the United States," the court filing said.
"The Debtors believe a number of these entities have solvent balance sheets, independent management and valuable franchises."
FTX filed for bankruptcy in November, declaring in filings it had over $10 billion in liabilities.
Its founder Sam Bankman-Fried was arrested by Bahamian authorities for charges including wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering.