Infamous crypto exchange FTX has secured approval from the court to put particular subsidiaries and assets on sale.
Alameda Research and FTX have used diverse subsidiaries to spend close to USD 5.3 billion split into 473 investments, as reported by The Block Research. From ‘small’ investments, like pouring USD 1 million into Messari, Limit Break and other startups, to huge ones, such as the investment into the dev of Sui blockchain, Mysten Labs, where the two defunct companies provided USD 100 million.
On the 18th of January, liquidators of FTX requested to reclaim the interests of FTX on behalf of interested parties (investees), to enable securing extra capital from different investors.
The bankruptcy court for the US-based district of Delaware agreed to authorize the transfer or sale of particular assets, provided that they are ‘relatively de minimis’ compared to the total value of FTX’s asset base. Initially, FTX filed a motion that mentioned of 185 investments made by the exchange for at most USD 1 million.
The court order approves and authorizes the transfer or sale of assets that are held by private or public companies. Assets include token warrants and tokens, shares, warrants, future equity interests, promissory notes, and future token interests. The order also grants subsidiaries and related interests to be sold or transferred. These include investment funds such as limited collaboration interest in VC.
