Plans by bankrupt crypto exchange FTX to sell its digital currency futures and clearinghouse LedgerX, among other businesses, were challenged by the US Trustee on Jan. 7, according to Reuters.
According to the filing, US trustee Andrew Vara requested an independent investigation prior to any sale, claiming that valuable information related to the bankruptcy of the exchange could be compromised. The document says:
“The sale of potentially valuable causes of action against the Debtors’ directors, officers and employees, or any other person or entity, should not be permitted until there has been a full and independent investigation of all persons and entities that may have been involved. in any misappropriation, negligence or other actionable conduct”.
In an effort to recover lost funds from exchange clients, FTX’s new management planned to sell its units in Japan and Europe, along with derivatives exchange LedgerX and equity clearing platform Embed. In a December 15 filing, attorneys representing FTX argued that selling these businesses would maximize FTX’s value to the state.
Related: FTX clients want more information on FTX plans to sell subsidiaries
FTX’s lawyers also estimate that a possible sale of the units would be much easier, since they were recently acquired and operated independently of FTX. Auctions for the business were scheduled to begin in February with the Embed sale, followed by three more auctions in March.
FTX Japan was subject to business suspension and improvement orders in November amid the collapse of its parent company. FTX Europe also saw its licenses and operations suspended following a request by the Cyprus Securities and Exchange Commission, Cointelegraph reported.
There are more than 110 interested in buying one or more of the 134 companies included in the bankruptcy. FTX has already entered into 26 confidentiality agreements with counterparties.
FTX founder and former CEO Sam Bankman-Fried has pleaded not guilty to all criminal charges related to the collapse of the cryptocurrency exchange on Jan. 3, including wire fraud, securities fraud and financing violations. bells.
This post FTX Asset Sale Questioned By US Trustee: Report
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