bankrupt crypto exchange ftx The US bankruptcy court on Thursday received permission to sell it laserx A $50 million (roughly Rs. 408 crore) business, raising additional funds to repay creditors.
At a hearing in Wilmington, Delaware, US Bankruptcy Judge John Dorsey signed off on the sale of FTX to LedgerX, which is non-bankrupt. crypto derivatives trading platform, an affiliate of Miami International Holdings.
Miami International Holdings owns several US-registered securities exchanges, including the Bermuda Stock Exchange and the Miami International Securities Exchange.
FTX is attempting to repay customers an estimated $11 billion (roughly Rs. 89,850 crores) through a combination of asset sales and clawback actions. Since filing for bankruptcy in November, FTX has recovered more than $7.3 billion (roughly Rs. 59,630 crores) in cash and liquid crypto assets, the company reported in April.
As part of that broader effort, FTX said on Wednesday it would seek repayment of nearly $4 billion (roughly Rs. 32,670 crores) from Genesis Global Capital (GGC), the crypto firm’s bankrupt lending arm. Produce,
FTX said in a court filing that Genesis has that money as a result of a transaction that occurred shortly before FTX’s bankruptcy filing. Under US bankruptcy law, debtors can try to collect back payments made in the 90 days prior to the bankruptcy filing in order to distribute those funds more equitably among creditors.
According to FTX, Genesis was a primary “feeder fund” for FTX-affiliated hedge fund Alameda Research, which lent Alameda crypto assets, which it then used to make further loans and investments.
At one point, Alameda had $8 billion (about Rs 65,340 crore) in loans provided by Origin, according to FTX. FTX said that Genesis, unlike other creditors, was largely repaid before FTX filed for bankruptcy.
Companies in the cryptocurrency lending industry were highly interconnected during the tumultuous 2022 crisis that saw many fall into bankruptcy. FTX, the once-dominant crypto exchange, has filed for Chapter 11 amid allegations that founder Sam Bankman-Fried embezzled FTX customers’ money. almida‘s balance sheet.
Bankman-Fried has been indicted on fraud charges for her role in the company’s collapse, and has pleaded not guilty. Former members of his inner circle have pleaded guilty and agreed to cooperate with prosecutors.
© Thomson Reuters 2023