Skip to main content

FTX Gets Court Permission to Sell Its LedgerX Business to Raise Funds for Repaying Creditors

Bankrupt crypto exchange FTX received US bankruptcy court permission on Thursday to sell its LedgerX business for $50 million (nearly Rs. 408 crore), raising additional funds to repay creditors.

At a hearing in Wilmington, Delaware, US Bankruptcy Judge John Dorsey signed off on FTX's sale of LedgerX, its non-bankrupt crypto derivatives trading platform, to an affiliate of Miami International Holdings.

Miami International Holdings owns the Bermuda Stock Exchange and several US-registered securities exchanges, including the Miami International Securities Exchange.

FTX is attempting to repay an estimated $11 billion (nearly Rs. 89,850 crore) to customers through a combination of asset sales and clawback actions. Since filing for bankruptcy in November, FTX has recovered more than $7.3 billion (nearly Rs. 59,630 crore) in cash and liquid crypto assets, the company reported in April.

As part of that broader effort, FTX on Wednesday said it would seek repayment of nearly $4 billion (nearly Rs.  32,670 crore) from Genesis Global Capital (GGC), the bankrupt lending arm of crypto firm Genesis.

FTX said in a court filing that Genesis owes it that money as a result of transactions that took place shortly before FTX's bankruptcy filing. Under US bankruptcy law, debtors can try to claw back payments made in the 90 days before a bankruptcy filing so that those funds can be more equitably distributed among creditors.

Genesis was a primary "feeder fund" for FTX-affiliated hedge fund Alameda Research, loaning Alameda crypto assets that it used for further loans and investments, according to FTX.

At one point, Alameda held $8 billion (nearly Rs. 65,340 crore) in loans provided by Genesis, according to FTX. Genesis, unlike other creditors, was largely repaid before FTX went bankrupt, FTX said.

Companies in the crypto lending industry were highly intertwined during a turbulent 2022 that saw many tumble into bankruptcy. FTX, a once-prominent crypto exchange, filed for Chapter 11 amid allegations that founder Sam Bankman-Fried used FTX customers' money to prop up Alameda's balance sheet.

Bankman-Fried has been indicted on fraud charges for his role in the company's collapse, and he has pleaded not guilty. Former members of his inner circle have pleaded guilty and agreed to cooperate with prosecutors.

© Thomson Reuters 2023

Will crypto tax hurt the industry in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.


from Gadgets 360 https://ift.tt/CFeg5aH
Labels:

Comments

Post a Comment

Popular posts from this blog

US Power Firm Admits It May Have Sparked Texas' Largest Wildfire Ever

A US power company admitted Thursday that its equipment may have sparked the largest wildfire in Texas' history. Xcel -- the parent of Southwest Public Service Company, which provides electricity to part of the state -- said it was working with officials investigating the cause of the blaze that charred more than a million acres (over 400,000 hectares). "Based on currently available information, Xcel Energy acknowledges that its facilities appear to have been involved in an ignition of the Smokehouse Creek fire," the company said. Hundreds of homes are thought to have been destroyed in the fire, which is known to have killed at least two people and over 3,000 farm animals. Xcel, which is facing at least one lawsuit, denied its equipment was improperly maintained. "However, we encourage people who had property destroyed by, or livestock lost in, the Smokehouse Creek fire to submit a claim to Xcel Energy through our claims process," the statement said. The W
Post a Comment
Read more

It's Official, Kamala Harris Is Democratic Candidate For US Election

US Vice President Kamala Harris effectively secured the Democratic party's presidential nomination Friday, confirming her remarkable rise to party standard bearer in November's showdown against Republican Donald Trump. Kamala Harris was the sole candidate on the ballot for a five-day electronic vote of nearly 4,000 party convention delegates. She will be officially crowned at a Chicago convention later this month. "I am honored to be the presumptive Democratic nominee for President of the United States," Kamala Harris, 59, said on a phone-in to a party celebration after securing enough votes by the second day of the marathon vote. In the two weeks since President Joe Biden ended his reelection bid, Kamala Harris has gained full control of the party. No other Democrats stepped forward to challenge her elevation to the top of the ticket, making her confirmation as the first Black and South Asian woman ever to secure a major party's nomination a formality. The a
Post a Comment
Read more

All You Need To Know About Donald Trump's 1st Criminal Trial

Donald Trump goes on trial Monday for allegedly covering up hush money payments to hide affairs ahead of the 2016 presidential election which propelled him into the White House. He will become the first former US president to go on criminal trial when jury selection begins next week. Here are the key questions ahead of the landmark trial: What is Trump accused of? As Trump closed in on victory in the 2016 presidential election, adult film star Stormy Daniels was paid $130,000 to keep quiet about an alleged 2006 sexual tryst with Trump. The payments, made by Trump's lawyer at the time, Michael Cohen, were revealed by The Wall Street Journal in January 2018. Prosecutors have seized on the concealment of the payments as "legal fees" in the Trump Organization's accounts when Cohen was reimbursed as the heart of their case. Prosecutors say Trump "concealed the reason for these payments... which clearly were paid in order to influence voters," former prosec
Post a Comment
Read more