More than 115 investors want to buy back at least part of FTX

Business Insider reported that the attorneys responsible for the Chapter 11 bankruptcy of the FTX are planning to auction off four companies previously run by Sam Bankman-Fried. A document filed in Delaware bankruptcy court on January 9 said that 117 parties have expressed interest in purchasing at least one FTX-owned entity and 59 confidentiality agreements have been reached. Best.

Their identities have not been disclosed, but the filing says they include “different global strategic and financial partners”.

The documents show that at least 50 parties are interested in LedgerX, an exchange purchased by FTX in October 2021, and Embed, purchased as part of a plan to allow securities trading on FTX.

In addition, European FTX and Japanese FTX are also for sale, both of which have about 40 interested parties. Creditors already have “preliminary due diligence documents” for Embed and LedgerX, but are still in the process of finalizing them. Bankruptcy filings from December 2022 said that these four businesses still “maintain segregated customer accounts”.

The filing also emphasizes that Embed, LedgerX and FTX Europe maintain separate computer systems, while FTX Europe and FTX Japan have separate headquarters. The four-company auctions will take place. out on 2/27.

However, a section of the federal justice department objected to the move, citing “serious concerns”. They argue that allowing auctions could impede the investigation into wrongdoing at FTX. A hearing is scheduled in Delaware bankruptcy court on Jan.

The litigation attorneys responsible for the FTX bankruptcy were not available for comment.

Reference: Business Insider