FTX initiates strategic review and seeks legal remedy to pay critical vendors

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Collapsed crypto exchange FTX announced on Saturday that it has launched a strategic review of its global assets and is preparing to sell or restructure some businesses.

FTX, along with approximately 101 affiliates, also sought a legal remedy to allow it to operate a new global cash management system and pay its critical suppliers.

The exchange and its subsidiaries filed for bankruptcy in Delaware on Nov. 11 in one of the most notorious crypto explosions, leaving an estimated 1 million customers and other investors with billions of dollars in total losses.

FTX asked in a court filing on Saturday for permission to pre-order up to $9.3 million for the final order.

The exchange said failure to obtain the remedy sought will result in “immediate and irreparable harm” to its businesses.

“Based on our review over the past week, we are pleased to learn that many of FTX’s regulated or licensed subsidiaries inside and outside the United States have strong balance sheets, responsible management and valuable franchises,” said FTX’s new chief executive officer, John said Ray.

The Company has appointed Perella Weinberg Partners LP as its lead investment bank to assist in the sale process, subject to court approval.

“I respectfully ask all of our employees, suppliers, customers, regulators and government officials to be patient with us as we make the arrangements that we were unable to make prior to filing our Chapter 11 cases due to corporate governance failures at FTX .” Ray said.

© Thomson Reuters 2022

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