Bankrupt Crypto Exchange FTX Investigates Subsidiary Sale, CEO Reveals – Featured Bitcoin News

Bankrupt Crypto Exchange FTX Investigates Subsidiary Sale, CEO Reveals – Featured Bitcoin News

Bankrupt cryptocurrency exchange FTX is exploring sales, recapitalizations and other strategic transactions related to its solvent subsidiaries. The company’s new CEO has instructed the FTX team “to prioritize as best we can in these difficult circumstances to preserve franchise value.”

New FTX CEO outlines priorities

Cryptocurrency exchange FTX and about 101 affiliates announced on Saturday that they are “launching a strategic review of their global assets to begin maximizing realizable value for stakeholders.” The review is part of their Chapter 11 bankruptcy process.

FTX’s new CEO, John J. Ray, III, who replaced Sam Bankman-Fried after the crypto exchange filed for bankruptcy on Nov. 11, explained:

Based on our research last week, we are pleased to learn that many of FTX’s regulated or licensed subsidiaries, inside and outside the United States, have solvent balances, responsible management and valuable franchises.

He explained that some financially attractive subsidiaries, such as Ledgerx and Embed Clearing, are not debtors in the Chapter 11 cases, while others are, including FTX Japan, Quoine, FTX Turkey, FTX EU, FTX Exchange FZE and Zubr Exchange.

Ray revealed:

It will be a priority of ours in the coming weeks to investigate any sales, recapitalizations or other strategic transactions related to these subsidiaries and others that we identify as our work progresses.

The executive added that he has directed FTX’s team “to prioritize preserving franchise value as best we can in these difficult circumstances.”

In addition, FTX filed several motions in bankruptcy court on Saturday “seeking injunctive relief from the court that, if granted, would allow the operation of a new global cash management system and the ordinary payment of critical suppliers and vendors at foreign subsidiaries.”

One of the court documents shows that the crypto company sought permission to pay critical suppliers essential to keep its operations functioning as it attempts to reorganize. The exchange said that without the requested legal assistance, its businesses will suffer “immediate and irreparable damage”. A hearing is scheduled for Tuesday, November 22.

Ray said last week after reviewing FTX records, “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of reliable financial information as here.”

How do you feel about FTX selling its businesses? Let us know in the comments below.

Kevin Helms

Austrian economics student Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests are in Bitcoin security, open source systems, network effects and the intersection between economics and cryptography.

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