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U.S. Trustee files objection to FTX's planned asset sales

Reuters · 01/07/2023 14:17
U.S. Trustee files objection to FTX's planned asset sales


- A U.S. Trustee filed an objection on Saturday to plans by bankrupt crypto exchange FTX to sell its digital currency futures and clearinghouse LedgerX, as well as units in Japan and Europe, according to a court filing.

FTX filed for bankruptcy protection in November and said last month it planned to sell its LedgerX, Embed, FTX Japan and FTX Europe businesses. On Tuesday, FTX founder Sam Bankman-Fried pleaded guilty to criminal charges that he cheated investors and caused billions of dollars in losses, in what prosecutors have called an "epic" fraud.

The filing by U.S. Trustee Andrew Vara called for an independent investigation before the sale of the units, arguing that the companies may have information related to FTX's bankruptcy.

"The sale of potentially valuable causes of action against the Debtors' directors, officers and employees, or any other person or entity, should be permitted until there has been a full and independent investigation into all persons and entities that may have been involved in any malfeasance, or other actionable conduct," the filing said.

FTX said in a court filing last month that the companies it planned to sell are relatively independent from the broader FTX group, and that each has its own segregated customer accounts and separate management teams.



(Reporting by Anirudh Saligrama in Bengaluru
Editing by Matthew Lewis)

((Anirudh.Saligrama@thomsonreuters.com; @journoanirudh on Twitter;))