FTX seeks permission to sell Japan, Europe entities and LedgerX

Attorneys representing FTX exchange are requesting permission from the U.S. bankruptcy court to sell four of the company’s branches: FTX Japan, FTX Europe, stock-clearing platform Embed, and crypto derivatives exchange LedgerX, according to Dec. 15 court filings.

See related article: FTX Probe Begins

Fast facts

• The attorneys argue that the longer these businesses have their operations suspended, the higher the risk of their devaluation or permanent license revocation.
• The lawyers stated that these businesses were recently acquired and have been operating more independently of FTX, which could simplify the sale process.
• The proposed auction date starts with Embed on Feb. 21, followed by LedgerX on Mar. 7, and FTX Japan and FTX Europe on Mar. 21.
• FTX Japan was ordered to suspend business operations by the country’s regulators on Nov. 11, and to come up with a business improvement plan.
• FTX’s European branch was also ordered to halt in the same period as FTX’s bankruptcy proceedings.
• The attorneys’ proposal comes days after FTX founder Sam Bankman-Fried was arrested in the Bahamas and charged with multiple counts of securities wire fraud, conspiracy, money laundering, and violating campaign finance rules.

See related article: US lawyers, Bahamas liquidators trade barbs over who rules FTX bankruptcy jurisdiction