FTX seeks legal relief to pay suppliers, asset review begins
Former investment banker Carol Roth weighs in on FTX CEO Sam Bankman-Fried’s relationship with Democratic leaders, like Rep. Maxine Waters on “The Evening Edit.”
Collapsed crypto exchange FTX is preparing to sell or reorganize some businesses.
To do so, it has begun a strategic review of its global assets.
In addition, the company and around 101 affiliated firms also submitted a request for legal relief to allow the operation of a new global cash management system and payments to critical suppliers.
FTX asked in a court filing on Saturday for permission to pay claims of up to $9.3 million to its critical suppliers after an interim order and up to $1[ads1]7.5 million after the entry of the final order.
CEO accused of starting FTX. SAM BANKMAN-FRIED’S ‘LIARS’ AND ‘THE STRAW THAT BREAK THE CAMEL’S BACK’.
FILE PHOTO: The logo of FTX 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 rocked the cryptocurrency world when they filed for bankruptcy in Delaware on November 11.
It left an estimated 1 million customers and other investors with total losses in the billions of dollars.
The exchange said that if it does not receive the requested legal aid, it will result in “immediate and irreparable harm” to the businesses.
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 over the past week, we are pleased to learn that many regulated or licensed subsidiaries of FTX, inside and outside the United States, have solid balance sheets, responsible management and valuable franchises,” FTX’s new 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.
This illustration 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 its lead investment bank to assist in the sale process, subject to court approval.
Reuters contributed to this report.
