A U.S. Trustee filed an objection to plans by FTX to sell its units in Europe and Japan, among other businesses.
Plans by the bankrupt crypto exchange FTX to sell its digital currency futures and the liquidation of LedgerX, among other companies, were challenged by the US Trustee on Jan. 7, according to Reuters.
According to the filing, US regulator Andrew Vara called for an independent investigation before any sale, saying that valuable information related to stock exchange failures could be compromised. The book says:
“A sale that may give rise to a cause of action against the directors, officers, and employees of the debtors, or any other person or company, shall not be permitted until there has been a full and independent investigation of All persons and institutions may be involved in any wrongful, negligent, or other acts.”
To recoup lost money from exchange customers, the new management of FTX planned to sell its units in Japan and Europe, as well as the LedgerX exchange and the Embed equity platform. In filing on Dec. 15, lawyers representing FTX argued that the sale of these products would increase their value in the FTX sector. FTX lawyers also said that selling the units would be easier because they were recently acquired and operated independently of FTX.
The company was supposed to start trading in February with the sale of Embed, followed by three more sales in March. FTX Japan was subject to a business suspension and promotion order in November amid the collapse of its parent company.
FTX Europe has also suspended its license and operations after a request from the Cyprus Securities and Exchange Commission, Cointelegraph reported.
There are more than 110 parties interested in buying one or more of the 134 companies included in the bankruptcy process. FTX has already entered into 26 non-disclosure agreements with partners. FTX founder and former CEO Sam Bankman-Fried have pleaded not guilty to all crimes related to the January 3 crypto exchange failure, including wire fraud, securities fraud, and money laundering.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up