Court allows FTX to sell shares in companies and other assets
The crypto-exchange will be able to sell assets worth less than $10 million. FTX's Turkish subsidiaries were excluded from the exchange's restructuring process
Crypto exchange FTX has received court approval to sell some investment assets and subsidiaries.
On Jan. 18, the exchange's liquidators filed a motion stating that certain investees had expressed a desire to buy back FTX stakes to facilitate the raising of additional capital from other investors. According to that document, the FTX group made about 185 investments, each of which was worth equal to or less than $1 million, about 75 of the investments were each worth between $1 million and $5 million, and each of the other 40 investments were worth between $5 million and $25 million.
Judge John Dorsey allowed the exchange to sell assets worth no more than $10 million, including investments in private or public companies, tokens and securities.
At the same time, CoinDesk reports that the Turkish units of FTX Turkey and SNG Investments will be excluded from U.S. bankruptcy proceedings. FTX Turkey is 80% owned by FTX Trading and SNG Investments is fully owned by trading firm Alameda Research.
FTX's new management had previously argued that it was unproductive to include these companies, whose assets and operations are mostly limited to Turkey, in restructuring plans. Judge Dorsey found that the request was "in the best interest" of FTX and its estate, and approved the FTX managers' request to exclude the two companies from the exchange's restructuring proceedings.
In late November, the Turkish Financial Crimes Investigation Board (MASAK) opened an investigation into former FTX cryptocurrency exchange head Sam Bankman-Fried. As part of the investigation, Turkish authorities have seized assets of the exchange and related individuals.
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