Bankrupt cryptocurrency exchange FTX is looking to sell its functioning subsidiaries, according to documents filed in bankruptcy court Friday.
FTX is seeking court permission to sell its Embed, LedgerX, FTX Japan, and FTX Europe businesses, with auctions planned for each business.
FTX finalized its acquisition of LedgerX, a derivatives exchange platform for digital currencies, in October 2021, and in June announced its acquisition of Embed, which specializes in providing white-label brokerage products and application programming interfaces (APIs) to broker-dealers and investment advisers.
What was once one of the world’s largest crypto exchanges, led by Sam Bankman-Fried, must now find ways to pay its dues to more than 1 million creditors worldwide.
CEO John Ray divulged plans to sell LedgerX at a hearing with lawmakers this week. FTX wants to “put [LedgerX] in the hands of a good steward, he told the House Financial Services Committee on Tuesday.
In discussing FTX’s spectacular collapse, Ray gave nods to “old-fashioned embezzlement” and an “unprecedented” lack of documentation.
Ray took the helm at FTX on Nov. 11, when Bankman-Fried stepped down, and the company filed for bankruptcy. Bankman-Fried, who hasn’t been shy to talk to the press or tweet lawmakers since the public implosion of FTX and its sister companies, was arrested in the Bahamas Monday on charges including wire fraud and conspiracy to commit securities fraud.
Bankman-Fried was denied bail in the Bahamas on Tuesday and is currently being held at Fox Hill Prison. He is expected to be extradited to the U.S.