FTX Declines Disclosure to Sell LedgerX and Other Businesses

As the FTX investigation is still ongoing, several unexpected incidents have been discovered. In today’s news, Andrew Vara, the US bankruptcy trustee in FTX’s case, disclosed that the beleaguered exchange has refused to provide financial details regarding the businesses it intends to sell. 

The businesses, according to Vara, include crypto derivatives exchange and clearinghouse LedgerX, FTX Europe, and custody platform Embed, FTX Japan.

US Bankruptcy Trustee In FTX Files An Objection Against The Exchange’s Sale Intent

Given that FTX is under investigation, the exchange plans to execute the sale of the other businesses in a coded manner. According to Vara, the crypto exchange has provided “very little information” on what is being sold. 

Vara added in a Delaware court filing that the exchange hadn’t outlined any financial affairs that include assets and liabilities of each entity and that it’s currently seeking to delay this documentation until after the sale hearings.

Vara stated, “Without these filings, there is no information regarding the nature or value assets of the Debtors whose businesses the Debtors seek to sell.” To be less strong-headed, Vara said as long as the company’s proposed business is investigated, then it can go ahead to make the sale. 

He particularly called for an independent investigation into the businesses FTX intends to sell, recommending that “there is a serious concern” about them being a part of FTX’s bankruptcy and holding necessary information.

The filing noted, “The sale of potentially valuable causes of action against the Debtors’ directors, officers, and employees, or any other person or entity, should not be permitted when there have been serious allegations of wrongdoing, and no investigation yet into the scope of such wrongdoing, or the persons and entities that may have been involved.”

Despite the frightening charges surrounding the exchange, FTX’s lawyer has emphasized that the sale of the businesses should be made quickly, as the business value could plummet over time due to suspended operations. 

Under Officials’ Radar 

With several charges being discovered about the exchange, both the exchange and the executives are still under the official’s radar. Last week, Bitcoinist reported that the United States Department of Justice (DOJ) had begun strict intervention into taking control of the FTX matters. 

The DOJ disclosed its plan to seize Robinhood Markets shares related to Sam Bankman-Fried. Though SBF was accused of running a “fraud of epic proportions” at the exchange for years, he pleaded not guilty on Tuesday in a New York Federal Court.

Meanwhile, the FTT token seems to be in a shaky state after the whole unending saga that has happened in the past months. The token has plummeted by over 90% from its all-time high since the exchange filed for bankruptcy and is currently trading below $2 with no hope of ever reaching a higher high.

Featured image from Shutterstock, charts from TradingView