FTX Files for Redress to Pay Sellers, Begins Review of Assets

Collapsed crypto exchange FTX is preparing for the sale or reorganization of some businesses.

To do this, it has begun a strategic review of its global assets.

In addition, the company and approximately 101 affiliates have also filed for receivership to allow a new global cash management system to operate and pay its critical suppliers.

FTX filed in court on Saturday for permission to pay claims of up to $9.3 million to its critical suppliers after an interim order and up to $17.5 million after the final order was entered. .

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FILE PHOTO: The FTX logo is seen at the entrance to the FTX Arena in Miami, November 12, 2022. (REUTERS/Marco Bello/File Photo/Reuters Photos)

The exchange and its affiliates shook the cryptocurrency world when they filed for bankruptcy in Delaware on November 11.

This left around 1 million customers and other investors facing total losses of billions of dollars.

The exchange said failure to receive the requested legal relief would result in “immediate and irreparable harm” to its businesses.

Sam Bankman Fried

Sam Bankman-Fried, Founder and Former CEO of FTX (Ting Shen/Bloomberg via Getty Images/File/Getty Images)

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“Based on our review last week, we are pleased to learn that many of FTX’s regulated or licensed affiliates, inside and outside the United States, have sound balance sheets, responsible management and valuable franchises,” said the new FTX. President and CEO John Ray said.

Ray was named CEO of FTX shortly before the company filed for Chapter 11 bankruptcy and founder Sam Bankman-Fried resigned.

FTX

This illustration photo shows a smartphone screen displaying the FTX logo. (Olivier Douliery/AFP via Getty Images/Getty Images)

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The company has appointed Perella Weinberg Partners LP as lead investment banker to assist with the sale process, subject to court approval.

Reuters contributed to this report.