Sale of FTX Assets OK'ed by Bankruptcy Court

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On January 12, 2023, Delaware Bankruptcy Court Judge John Dorsey approved the sale of four of FTX's key units. [See, Kroll Restructuring Administration. NOTICE OF (I) SOLICITATION OF INITIAL BIDS, (II) PROPOSED SALE OF CERTAIN BUSINESSES FREE AND CLEAR OF ANY LIENS, CLAIMS, INTERESTS AND ENCUMBRANCES, (III) AUCTION(S) AND SALE HEARING(S) AND (IV) RELATED DATES. (Accessed January 14, 2023)]. The assets included to be sold are LedgerX (former FTX derivatives platform), Embed (former FTX stock trading platform), FTX Europe, and FTX Japan.

Needless to say, the FTX situation since its implosion is one giant mess. Lawyers, in an attempt to mitigate the risk of loss of value to these four business units commenced procedures to sell these assets on December 15, 2022. Note, at present, FTX Japan is subjected to business suspension orders and FTX Europe has its licenses suspended.

According to Andy Dietderich, attorney for FTX, so far FTX has recovered approximately $5 billion in cash and cryptocurrencies. He added, however, the embattled platform continues to rebuild its transaction history and FTX's customer shortfall amount remains unclear.

In the meantime, Sam Bankman-Fried, former FTX Chief Executive Officer, plead not guilty to all of the criminal charges pending against him. Among others, the charges he faces include wire fraud, conspiracy to commit money laundering and conspiracy to misuse customer funds. SBF recently claimed he did not steal FTX (or its customers funds), nor did he stash away billions of dollars. He has claimed that when the present CEO John Ray took over, FTX held $8 billion. Allegedly SBF has pledged to utilize his personal assets to assist in the reimbursement process to FTX users.

Interested bidders for any or all four of the FTX assets have been directed to contact the investment bank, Perella Weinberg, which has been assigned the task of beginning the sale. To date, 117 parties are interested in purchasing the FTX assets for sale. As part and parcel of their respective due diligence, these interested parties may access information prior to purchase by contacting the investment bank.

The following timelines have been established by the Court relative to the FTX sale of assets:

PRELIMINARY BID DEADLINE -

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BID DEADLINE -


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