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- The crypto exchange debtors sought potential buyers for companies.
- FTX filed for Chapter 11 Bankruptcy in November.
The collapsed Bahamian crypto exchange FTX is going through bankruptcy proceedings which is now reported to have witnessed a development. As per a recent filing, the independent subsidiaries, which were also founded by Sam Bankman-Fried (SBF), are up for sale. A large number of entities have shown interest in buying.
A partner of the investment bank Perella Weinberg, representing FTX US and other affiliated firms, Kevin Cofsky, filed a declaration in court on January 8th giving details regarding the proposed bid.
According to Cofsky, approximately 117 parties across various sectors including global financial and strategic counterparties are interested in buying “one or more of the Businesses” of FTX.
These 117 parties want to purchase FTX Japan, FTX Europe, LedgerX and Embed—all four are independently operated subsidiaries of Bankman-Fried’s crypto exchange.
The filing further stated that the debtors looked to enter into 59 confidentiality agreements with potential counterparties interested in the purchase of aforementioned subsidiary companies.
With no prior agreements yet, the potential buyers can have access to due diligence facilitated information including the operations, finances and technology related details of business units.
About 50 entities showing interest in Embed, while 56 parties are interested in LedgerX. For the other subsidiaries, FTX Japan and FTX Europe, the number of potential buyers is 41 and 40 respectively.
FTX filed in December seeking permission from the bankruptcy court for the sale of its Japanese and European subsidiaries along with the aforementioned clearing companies.
Initial bids submission for these firms are scheduled to wrap up between January 18 and February 1st, 2023.
These firms are independent identities and operations separate from the Bahamian crypto exchange. However, FTX Japan and FTX Europe being independent subsidiaries, needed to get a license and business suspensions at the end of last year.
While other firms have different scenarios, FTX went on to acquire the clearing firm Embed in June last year seeking its stock and equities offerings strengthening. In August 2021, it went on to buy LedgerX, a Commodities Futures Trading Commission (CFTC) regulated clearinghouse for digital asset futures and options.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
