FTX files for relief from court to pay vendors, and initiate asset audits

Collapsing cryptocurrency exchange FTX is preparing to sell or reorganize some companies.

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

In addition, the company and about 101 of its subsidiaries have also filed for relief with the court to allow the operation of a new global cash and payment management system for its VIP vendors.

FTX asked in court on Saturday for permission to pay claims of up to $9.3 million to its significant sellers after an interim order and up to $17.5 million after a final order is 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 Images)

The stock exchange and its affiliates shook The world of cryptocurrency When they filed for bankruptcy in Delaware on November 11th.

It left an estimated one million customers and other investors facing billions of dollars in total losses.

The exchange said that if it failed to obtain the required legal aid, it would cause “immediate and irreparable harm” to its business.

Sam Bankman Fried

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

FTX founder Sam Fried of the bank was also a holistic donor

“Based on our review over the past week, we are pleased to learn that many of FTX’s regulated or licensed affiliates, both in the US and abroad, have solvent balance sheets, responsible management, and valuable franchises,” CEO John Ray He said.

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


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

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

Reuters contributed to this report.

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