After filing for permission to be allowed to sell some of its functioning businesses in December 2022, FTX can now breathe a sigh of relief after the judge in charge of overseeing the FTX bankruptcy proceedings approved the sale of its assets to aid its efforts in repaying its creditors.
The businesses that FTX has been allowed to sell include the derivatives platform LedgerX, it regional arms FTX Europe and FTX Japan, and the stock clearing platform Embed.
All systems go for auction
After the Delaware Bankruptcy Court Judge, John Dorsey gave the go-ahead for the sale of the four key FTX units, interested bidders can now Perella Bank which is tasked with overseeing the sale process. The investment bank will be representing FTX and its assets in the process.
Earlier this week, about 117 parties had expressed interest in buying the said FTX assets. These parties will now be allowed to access information regarding the assets so as to perform their due diligence before making up their minds on whether to go ahead with the purchase.
FTX Europe has its license suspended while FTX Japan is subject to business suspension orders.
The sale approval is a reprieve for the embattled crypto exchange which has so far recovered about $5 billion in assets since its collapse. The funds obtained from the sale will go a long way in raising funds for repaying the exchange’s creditors.