Procedures for selling FTX Japan, etc.
Cryptocurrency exchange FTX, which filed for bankruptcy last November, announced on the 8th that about 117 entities were interested in bidding on the four businesses it plans to sell.
The businesses that are moving forward with the sale also include Japanese exchange FTX Japan. FTX said in court filings that about 41 entities were interested in FTX Japan’s bid.
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FTX is prioritizing the sale of four businesses as part of Chapter 11 (Chapter 11) bankruptcy proceedings. It filed a petition in bankruptcy court last month to sell four businesses, and said the sale would be conducted in an auction format, allowing bidders to bid on a single business or a combination of multiple businesses.
What is Chapter Eleven
A reconstruction-type bankruptcy legal system similar to the Civil Rehabilitation Law of Japan. The company will be restructured by reducing debts while continuing to operate. Debt collection will be suspended after the application, and the debtor will work on debt consolidation and formulate a reconstruction plan within 120 days in principle.
Relation: FTX filed for sale of 4 businesses including Japanese virtual currency exchange
The number of companies offering the business for sale and the number of entities interested in bidding are as follows:
- FTX Japan (Japanese virtual currency exchange): about 41
- LedgerX (derivatives exchange): about 56
- Embed (clearing and custody platform): about 50
- FTX Europe (European digital asset company): about 40
FTX explained that the sale process was relatively easy for these four companies, partly because they were regulated and their businesses were more independent than other group companies.
Of the approximately 117 entities interested in bidding for one or more projects, FTX has non-disclosure agreements with 59 entities as of Wednesday. Deadlines for preliminary bidding are as follows:
- FTX Japan: February 1, 2023
- LedgerX: January 23, 25
- Embed: January 18, 23
- FTX Europe: February 1, 2023
The U.S. Department of Justice’s Federal Trustee has expressed concern that the sale of this business may affect FTX-related investigations, but the company has said that it will proceed with the sale in consideration of such concerns.
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