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FTX Units on Auction Block Draws 117 Interested Buyers: Court Filing

Embed, LedgerX, FTX Japan, and FTX Europe are four of the companies up for sale as part of the bankruptcy proceedings.

117 parties have expressed interest in acquiring one or more of FTX’s independently operated subsidiaries, which include FTX Japan, FTX Europe, LedgerX, and Embed.

Kevin Cofsky, a partner at Perella Weinberg, the investment bank that represents FTX US and affiliated firms, filed a court filing on January 8th. According to Cofsky:

“Approximately 117 parties, including various financial and strategic counterparties globally, have expressed interest to the Debtors in a potential purchase of one or more of the Businesses.”

He went on to say that the debtors had signed 59 confidentiality agreements with potential counterparties who were interested in one or more of the companies.

While no binding agreements have been reached, they can obtain information to aid in due diligence, such as information about the business unit’s operations, finances, and technology.

According to lawyers representing FTX debtors, four businesses are up for sale: Embed, LedgerX, FTX Japan, and FTX Europe.

According to the filing, approximately 50 parties were interested in Embed, 56 in LedgerX, 41 in FTX Japan, and 40 in FTX Europe.

Embed is a clearing firm acquired by FTX in June 2022 to expand its stock and equities offerings. LedgerX is a CFTC-regulated digital currency futures and options exchange and clearinghouse that will be acquired by FTX in August 2021.

FTX Japan and FTX Europe are independent subsidiaries of FTX Global, but their licenses and operations were suspended in December.

In December, FTX asked a U.S. bankruptcy court for permission to sell the firm’s Japanese and European branches, as well as the two clearing companies.

The four firms’ initial bid deadlines are set to expire between January 18 and February 1.

 

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