LedgerX and Other Properties to be Sold by FTX to Pay back Creditors

The cryptocurrency exchange has been granted permission to dispose of a portion of its assets in order to reimburse creditors by a judge supervising the FTX bankruptcy process. The CFTC-regulated derivatives exchange LedgerX LLC, the stocks trading software Embed Technologies, FTX Japan Holdings, and FTX Europe are among the businesses that will be auctioned.

The duty of starting the sale procedure has indeed been given to investment bank Perella Weinberg. In a court filing on January 8, Perella Weinberg partner Kevin Cofsky stated that roughly 117 entities had shown interest in buying the properties, and they will now have accessibility regarding them as part of their reasonable care.

In accordance with the document, parties involved have until January 18 for Embed, January 25 for LedgerX, and February 1 for both FTX Japan and FTX Europe to make non-binding preliminary bids for the property they are looking to purchase.

On December 15, 2022, attorneys for FTX started asking for approval to sell the four companies, citing worries about possible value erosion. The licenses of FTX Europe are already revoked, and corporate revocation orders have also been issued for FTX Japan.

According to FTX attorney Andy Dietderich, the company has allegedly recovered almost $5 billion in cash, digital currency, and liquid securities assets thus far. The precise sum of the consumer shortfall is still unknown.

While attempting to manage some of the firm's more complicated assets in DeFi, the FTX reorganization team has encountered significant challenges. For instance, on-chain data reveals that when the team attempted to transfer money into a multi-sig wallet controlled by Alameda Research, about $72,000 in Aave Wrapped BTC was lost.

Sam Bankman-Fried, the former CEO of FTX, who has pleaded not guilty to all allegations, recently asserted that he did not embezzle money or hide billions. According to the former CEO, FTX International had $8 billion before John Ray became the company's new CEO. Bankman-Fried said that he promised to utilize his own resources to support the task of compensating users.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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