•Judge John Dorsey has allowed the sale of four units of failed crypto exchange FTX.
•LedgerX, a derivatives trading platform, and Embed, a stock trading platform with regional branches, are among the assets.
•Investment firm Perella Weinberg has received interest from 117 potential buyers.
The Delaware Bankruptcy Court recently green-lit the sale of four units of failed crypto exchange FTX. The sale of the FTX assets, which comprises the European and Japanese divisions of the cryptocurrency exchange, can now begin, with investment firm Perella Weinberg having received interest from 117 potential buyers. The official expression of interest to purchase the permitted units of exchange can be made between January 18 and February 1.
The once-dominant exchange crashed shortly after news broke that its trading arm Alameda Research had fabricated its financial statements. The failed exchange is now looking to pay back its debts by selling its more separate and financially sound assets. The court’s decision makes it official that there can be bids, an auction, and a sales hearing. The final approval of any transaction will happen at a later date.
At the outset of Wednesday’s hearing, the attorney of the failed exchange, Andy Dietderich, informed US Bankruptcy Judge John Dorsey in Delaware that the exchange had located over US$5 billion of cash, liquid cryptocurrency, and liquid investment securities. This was a promising sign that the exchange could pay its debts and move forward.
The sale of the four units of exchange is a promising step in the right direction for FTX. The exchange is hoping to get back on its feet and become a dominant player in the crypto market once again. The interested buyers have the opportunity to purchase the units of exchange at a discounted rate, and the hearing will determine which of the 117 potential buyers will be chosen to purchase the assets.
The failed exchange is looking to the future with optimism and is hoping to be back in the game soon. With the court’s decision, the process to find a buyer has officially begun and soon enough, FTX will be able to get back on its feet and become a major player in the crypto market once again.