FTX to unwind LedgerX and other subsidiaries to return funds to creditors

FTX, going through bankruptcy proceedings, filed in court a motion to sell a number of entities within the group, including LedgerX (FTX US Derivatives), FTX Japan, FTX Europe and Embed Business.

“Several of these firms have solvent balance sheets, independent management and valuable franchises,” — the document states.

Most of the entities operated largely independently of their global parent company. Their assets were segregated from the Bitcoin exchange.

During a hearing before the US Congress, CEO John Ray III stated that even FTX US did not actually have full independence.

Advancing the initiative remains a priority, as licenses have been suspended for many of the entities named. The longer the situation persists, the greater the risk of asset devaluation and ongoing revocation of operating licenses.

The filing says that FTX has received more than 100 bids from potential buyers. If the proceeding is approved, the exchange would be ready to reconsider them for participation in auctions from February to March 2023, with court approval at a subsequent hearing.

As Bloomberg reporters named Genesis Digital Assets the largest investment by Alameda Research, the market maker linked to FTX.

Earlier, the agency reported interest in LedgerX from at least 10 companies. Among them are Blockchain.com, Gemini and Bitpanda.

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