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The defunct cryptocurrency exchange FTX yesterday submitted a fresh motion to the Delaware Bankruptcy Court requesting approval of the bidding processes for four of the company’s independent, solvent subsidiaries.
The company is trying to raise money through the sale of its subsidiary businesses to pay its billion-dollar debt to creditors.
If the sale of assets is outside the normal course of business, bankrupt businesses need to get the court’s approval. In the upcoming two months, FTX intends to sell Embed Technologies, LedgerX LLC, FTX Japan, and FTX Europe, according to the filing. The motion has a hearing date of January 11, 2023, and the deadline for objections is December 29, 2022.
The company has already received “dozens of unsolicited bids,” according to the filing. Nevertheless, the court must give its approval before the bidding can start.
The motion directs the company to sell such solvent businesses as soon as practicable. Protracted delays can have a significant impact on their value.
“The licenses held by FTX Europe have been suspended, and FTX Japan is subjected to suspension,” read the motion. “The longer operations are suspended, the greater the risk to the value of assets and the risk of permanent revocation of licenses.”
Broker-dealers and financial institutions can use the clearing and custody platform run by Embed Technologies. Additionally, it is an SEC-regulated broker-dealer that is registered with FINRA. The deadline for submissions for Embed Technologies is January 18, 2023.
The deadline for submission of bids is January 25, 2023, and FTX also intends to sell all of its shares in LedgerX, the CFTC-approved derivatives exchange. Two additional subsidiaries, FTX Japan and FTX Singapore are owned by FTX Japan Holdings.
