FTX gets judge's approval to start selling LedgerX and other units

Quick Take

  • FTX can begin selling its business units to raise money for creditors, a bankruptcy judge overseeing the case ruled on Thursday.
  • More than 100 parties have already expressed interest in bidding for the units.

Collapse crypto exchange FTX got the judicial green light to begin selling parts of its business, the next step in raising money to repay its more than one million creditors.

LedgerX, Embed and FTX's European and Japanese operations can begin auction processes in the coming days, Judge John Dorsey ruled on Thursday. 

More than 100 offers of interest have already come in, the team overseeing the wind up of FTX told the bankruptcy court earlier this month. The U.S. Trustee, a division of the Department of Justice, earlier objected to any sale process given investigations into FTX are ongoing. The Trustee will be able to review the sale process and file objections, Thursday's ruling said.

A lawyer for FTX told the court on Wednesday that the firm had so far found around $5 billion in cash, liquid assets and crypto tokens. Any unit sales will add to that pot. It is yet not clear exactly how much money is owed to creditors. Speaking at the same hearing, FTX attorney Andy Dietderich said the exchange's incomplete financial records meant his team was recreating claim values for every customer.

Disclaimer: Beginning in 2021, Michael McCaffrey, the former CEO and majority owner of The Block, took a series of loans from founder and former FTX and Alameda CEO Sam Bankman-Fried. McCaffrey resigned from the company in December 2022 after failing to disclose those transactions.


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