FTX businesses including LedgerX draw interest from over 100 potential buyers
Roughly 117 parties are interested in buying entities of the FTX, according to a new legal filing in the troubled crypto exchange’s bankruptcy case.
The crypto giant filed for bankruptcy protection in November after a run on its native utility token. FTX’s bankruptcy filing included more than 100 entities, and the firm could owe $3.1 billion to its top 50 creditors.
Lawyers representing the FTX debtors in the bankruptcy process have prioritized selling four businesses that include Embed, LedgerX, FTX Japan and FTX Europe.
The four entities are relatively independent from FTX, attorney Kevin Cofsky said in a legal filing on Sunday, and their value may decrease during the bankruptcy case if they are not sold. Cofsky is a partner at Perella Weinberg Partner, the investment bank representing FTX US and affiliated companies that have filed for bankruptcy protection.
The debtors have entered into confidentiality agreements with 59 of the 117 parties who are interested in buying the FTX entities. Approximately 50 parties are interested in Embed, 56 are interested in LedgerX, 41 are interested in FTX Japan and 40 are interested in FTX Europe, according to the filing.
An initial hearing on the sales had been set last month for Jan. 11, though the number of interested parties and other moving parts of the massive bankruptcy proceeding could affect that timing.
Disclaimer: Beginning in 2021, Michael McCaffrey, the former CEO and majority owner of The Block, took a series of loans from founder and former FTX and Alameda CEO Sam Bankman-Fried. McCaffrey resigned from the company in December 2022 after failing to disclose those transactions.
Reference : https://www.theblock.co