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Court Clears FTX to Sell Japanese Solvent Assets and LedgerX

Delaware bankruptcy court cleared collapsed FTX to dispose of the separable units to repay its creditors. FTX management lauded the Thursday ruling delivered by Judge John Dorsey to clear the sale of four solvent units to enable the embattled crypto exchange to settle creditors’ claims. 

FTX Allowed to Sell Separable Units

The Delaware bankruptcy judge directed investment bank Perella Weinberg to sell off the solvent assets in Europe and Japan operations. Besides clearing the sale of the derivatives unit LedgerX, Judge Dorsey allowed the inclusion of stock-clearing Embed in the sell-offs. 

The order clearing the sale extended to European and Japanese units that FTX’s attorney had revealed during the January 11 hearing to attract 117 interested parties. The directive offers a huge reprieve for affected creditors whose digital wealth has been trapped since FTX filed for Chapter 11 protection. 

Transparent Sale of Solvent Assets

The ruling delivered in the Delaware Bankruptcy Court, tasked to oversee the exchange wound-up, directed the disclosure of the sale notices. Judge Dorsey ordered that investment bank Perella Weinberg publish the sale notices within 3 days. The ruling delivered 24 hours following the Wednesday hearing directed that the investment bank should receive the expression of interest in the Embed assets by January 18. Interests expressed in the FTX Europe and Japan assets should be submitted by February 1. 

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The clearance of selling the solvent assets is a critical milestone in winding up Sam Bankman-Fried’s empire, whose ship has been sinking every day since the enterprise sought bankruptcy protection on November 11 last year. 

Optimizing Value for Creditors

The ruling directed the exclusion of claims submitted by the former executives and relatives. Judge Dorsey dismissed their rights to the claims citing concerns expressed by the justice department over their involvement in perpetrating the alleged wrongdoing.

Meanwhile, investigations are ongoing with Bankman-Fried out on bail and pleading not guilty to the alleged charges. The former chief executive is set to face off with former lieutenants Gary Wang and embattled Caroline Ellison, who headed Alameda Research and opted to cooperate with the investigators.

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Lauding the ruling, the head of the FTX estate John Ray was optimistic about optimizing value for the creditors. The restructuring expert restated the company’s priorities as expediting the sale of easy-to-separate units. 


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Stephen Causby

Stephen Causby is an experienced crypto journalist who writes for Tokenhell. He is passionate for coverage in crypto news, blockchain, DeFi, and NFT.

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