FTX Initiates a Strategic Assessment and Seeks Court Assistance in Order to Pay Essential Vendors

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Last Updated on November 19, 2022 by Bitfinsider

Collapsed cryptocurrency trading platform On Saturday, FTX said that the company has begun conducting a strategic evaluation of its global assets and is making preparations for the sale or reorganization of some operations.

Along with around 101 other enterprises with which it is linked, FTX has petitioned the court for relief in order to enable the functioning of a new global cash management system and payment to its essential suppliers.

As a result of one of the most publicized failures in the cryptocurrency industry, the exchange and its affiliated companies filed for bankruptcy in the state of Delaware on November 11. This left an estimated one million clients and other investors facing total losses in the billions of dollars.

FTX sought the court for permission to pay prepetition claims of up to $9.3 million to its important vendors after an interim order of up to $17.5 million after the entry of the final decision in a court document that was submitted on Saturday.

The exchange has stated that its businesses will suffer “immediate and irreparable loss” in the event that they do not receive the judicial remedies that they have requested.

According to FTX’s new Chief Executive Officer John Ray, “Based on our evaluation over the past week, we are glad to see that numerous regulated or licensed companies of FTX, within and outside of the United States, have solvent balance sheets, responsible management, and significant franchises.”

Subject to the consent of the court, the firm has selected Perella Weinberg Partners LP to take the main role of its investment bank in the process of selling the business.

In his statement, Ray said, “I respectfully ask all of our employees, vendors, customers, regulators, and government stakeholders to be patient with us as we put in place the arrangements that corporate governance failures at FTX prevented us from putting in place prior to filing our chapter 11 cases.” “I respectfully ask all of our employees, vendors, customers, regulators, and government stakeholders to be patient with us as we put in place the arrangements that corporate governance failures at


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