- The bankrupt trading platform has increased deadlines to receive bids for its Japanese and European businesses.
- The Japanese outlet has set aside funds to repay investors this month.
Since the Sam Bankman-Fried (SBF) founded crypto trading platform FTX Derivatives Exchange filed for bankruptcy back in November last year, the firm’s customers have been on the edge for new updates. In one of the most recent updates around, the company has announced an extension to the deadline for interested buyers to place a bid for its solvent subsidiaries.
When the company filed for bankruptcy, new CEO, John Ray III said at the time that it is not all of its subsidiaries that are insolvent. The firm listed LedgerX, Embed Technologies, FTX Japan, and FTX Europe as some of its healthy units. At the time, the firm applied for approval to sell off the units, and it got approval from bankruptcy judge John Dorsey to sell off the entities.
The primary goal remains to sell off these companies before the bankruptcy proceedings will be prolonged enough that their valuations will now tank. According to Bloomberg, both FTX Europe and FTX Japan have been getting bids for acquisition since the notice to sell was pushed out.
At the moment, the exchange’s outlet in the European Union has received a total of 40 bids while FTX Japan has one bid higher than the sister firm. With the new extension to the bidding periods, both firms may see additional bids roll in.
The closure of the bids is now scheduled for March 8 according to the filing lodged on Wednesday. Following the bid, the new date for the auction has now been pushed to April 26. While the focus, for now, is on FTX’s businesses in Europe and Japan, other subsidiaries of the embattled crypto trading platform are also garnering interest from investors across the board.
Per the report, as many as 117 entities have unveiled interest in one or more of the firm’s assets.
FTX Post-Bankruptcy proceedings focused on Customers
The collapse of FTX has stirred a catastrophic loss for thousands and millions of investors across the board. At this time, the core focus of the court-approved FTX liquidators focuses on repaying its customers and creditors around the world.
FTX said its creditors topped 1 million at the time of its bankruptcy filing and the firm’s collapse has been proven to cause as much as $9 billion in losses across the board. The proceed from the sales of the solvent subsidiaries will notably be added to the capital base to repay investors.
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Some of the subsidiaries that are already marked for sale like FTX Japan have pointed out plans to repay their users this February. The outfit revealed it will be able to fulfill this promise because it has segregated users’ funds prior to this time.
There is no doubt that FTX has lost its luster with global regulators and the firm is on track to lose its license in Japan even if its ownership changes. While the new owners will need to pursue licensing, they will at least not inherit the liabilities and drudgery in repaying creditors.
