The group that is managing the bankruptcy process for the defunct company FTX Trading stated on Saturday that the defunct cryptocurrency exchange will conduct an audit of all of its assets located in different parts of the world.
According to a press release, FTX.com and approximately 101 affiliate companies, collectively referred to as the "FTX Debtors," are in the process of launching a strategic review of all of the bankrupt company's global assets.
Review of FTX reveals that several of its subsidiaries are financially stable
The companies mentioned in the announcement that the activity is a component of the larger Chapter 11 process, and that its primary goals are to maximize the amount of asset recovery and to provide FTX stakeholders with as much value as is reasonably attainable.
The newly appointed Chief Executive Officer of FTX, John J. Ray III, expressed his feelings in this manner.
Last week, well-known bankruptcy attorney Ray took over as CEO of the company from Sam Bankman-Fried. Ray is a member of the American Bar Association. In a statement that was released on Saturday, he mentioned that the review will take into account the fact that some of FTX's subsidiaries have financial stability.
"Based on our review over the past week, we are pleased to learn that many of FTX's regulated or licensed subsidiaries, both inside and outside of the United States, have solvent balance sheets, responsible management, and valuable franchises," said Ray. "We are also pleased to learn that FTX's parent company, FTX Holdings, is in good financial standing."
Therefore, certain affiliated companies such as LedgerX, which FTX acquired in 2021, and Embed Clearing, which was part of FTX's acquisition spree in 2022, are not considered debtors. Others, however, including the crypto exchanges in Japan known as Liquid and Turkey known as FTX Turkey, are included in the bankruptcy cases as debtors.
In preparation for the possible sale of some of its businesses and the reorganization of others, FTX has selected Perella Weinberg Partners LP to serve as its lead investment bank. In spite of this, the Court has not yet given its blessing to FTX's decision to work with the investment banking adviser.
