FTX Begins Strategic Review, Seeks Court Relief to Pay Key Vendors
Collapsed crypto exchange FTX said on Saturday it has launched a strategic review of its global assets and is preparing for a sale or restructuring of other businesses.
FTX, along with about 101 affiliated firms, also sought court assistance to allow the implementation of a new cash management and payments system for its key vendors.
The exchange and its affiliates filed for bankruptcy in Delaware on November 11 in one of the highest-profile crypto blowups, leaving an estimated 1 million customers and other investors facing total losses in the billions of dollars.
FTX in a court filing on Saturday sought permission to pay claims of up to $9.3 million (around Rs. 75 crore) to its critical vendors after an interim injunction and up to $17.5 million (around Rs. 140 crore) after the entry of final order.
The exchange said that if it fails to obtain the requested court relief, it will result in “immediate and irreparable harm” to its businesses.
“Based on our review last week, we are pleased to hear that many of FTX’s regulated or licensed subsidiaries, both inside and outside the United States, have solvent balance sheets, responsible management and valuable franchises,” FTX’s new CEO John . Ray said.
The company has appointed Perella Weinberg Partners LP as its lead investment bank to assist with the sale process, subject to court approval.
“I respectfully ask all of our employees, vendors, customers, regulators and government stakeholders to bear with us as we file plans that FTX’s corporate governance failures have prevented us from starting before filing our chapter 11 cases,” Ray said.
© Thomson Reuters 2022