Executive leaders of the collapsed FTX plan to sell off what is left of the crypto exchange, well-grounded ventures to prevent further losses.
The bankrupt crypto exchange was once at the top of global crypto exchange, however, mismanagement of users’ funds has not only seen the company plummet but also its subsidiaries. The crypto exchange since then has filed for bankruptcy in the United States.
Under the new CEO, Johan Ray III, lawyers have filed a court motion to obtain regulatory approval in selling off the remaining well-doing and valuable crypto exchange businesses including FTX Europe, LedgerX, and FTX Japan.
According to the lawyers, who filed the court motion, the companies are still running smooth operations, however, they are connected to the bankrupt crypto exchange, which may see key executives of these companies exit anytime.
They further claimed that the failure of the crypto exchange will most likely affect the established companies, therefore it is better to sell them in early 2023.
Recall that Alameda Research raised over $1.2 Billion from FTX without any disclosure. This raised funding belongs to the crypto exchange customers.
The crypto exchange company couldn’t execute the withdrawal of funds for its customers, leading to the company suspending its services.
Some experts believe that FTX’s ex-CEO, Sam Bankman-Fried (SBF) mismanaged user funds by making political donations and gifting items to celebrities.
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