FTX asset sales challenged by U.S. Trustee: Report

A plan to sell digital currency futures and settlement firm LedgerX and other businesses of defunct crypto exchange FTX was challenged by U.S. trustees on Jan. 7. according to to Reuters.

According to the filing, U.S. trustee Andrew Barra called for an independent investigation before the sale, arguing that valuable information related to the exchange’s bankruptcy could be at risk. The documentation states:

“The sale of any potentially valuable cause of action against a debtor’s directors, officers, employees, or other persons or entities shall be subject to a full and independent investigation into all persons and entities that may have been involved. No fraud, negligence, or other viable conduct shall be permitted.

To recover lost funds from the exchange’s customers, FTX’s new management planned to sell its units in Japan and Europe, along with derivatives exchange LedgerX and equity clearing platform Embed. In a Dec. 15 filing, the attorney representing FTX argued that selling these businesses would maximize his value to FTX State.

RELATED: FTX Customers Ask for More Information About FTX’s Plans to Sell a Subsidiary

FTX attorneys also estimate that a potential sale of the units would be much easier since these units were recently acquired and operate independently of FTX. The business’s auction began in February with his sale at Embed, followed by three other he auctions in March.

In November, FTX Japan received a business suspension and improvement order following the bankruptcy of its parent company. Cointelegraph reported that following a request from Cyprus’ Securities and Exchange Commission, FTX Europe has also suspended its license and operations.

More than 110 parties are interested in purchasing one or more of the 134 companies involved in bankruptcy proceedings. FTX has already signed 26 confidentiality agreements with its trading partners.

FTX founder and former CEO Sam Bankman-Fried acquitted of all criminal charges, including wire fraud, securities fraud and campaign finance violations, related to the Jan. 3 collapse of the cryptocurrency exchange. claimed.