FTX Launches Strategic Review, Seeks Court Relief to Pay Critical Vendors


Collapsed crypto exchange FTX said on Saturday it has launched a strategic review of its global assets and is preparing for the sale or reorganisation of some businesses.

FTX, together with about 101 affiliated firms, also sought court relief to permit the operation of a recent global money management system and payment to its critical vendors.

The exchange and its affiliates filed for bankruptcy in Delaware on November 11 in considered one of the highest-profile crypto blowups, leaving an estimated 1 million customers and other investors facing total losses within the billions of dollars.

FTX in a court filing on Saturday asked for permission to pay prepetition claims of as much as $9.3 million (nearly Rs. 75 crore) to its critical vendors after an interim order and as much as $17.5 million (nearly Rs. 140 crore) after the entry of the ultimate order.

The exchange said that if it fails to receive the requested court relief, it would lead to “immediate and irreparable harm” to its businesses.

“Based on our review over the past week, we’re pleased to learn that many regulated or licensed subsidiaries of FTX, inside and outdoors of the USA, have solvent balance sheets, responsible management and priceless franchises,” FTX’s recent Chief Executive Officer John Ray said.

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

“I respectfully ask all of our employees, vendors, customers, regulators and government stakeholders to be patient with us as we put in place the arrangements that corporate governance failures at FTX prevented us from setting up prior to filing our chapter 11 cases,” Ray said.

© Thomson Reuters 2022



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