Sina Technology News Beijing time on the evening of January 11, according to reports, the digital cryptocurrency exchange FTX will ask the US Bankruptcy Court today to allow it to auction part of the business and keep the names of customers confidential for at least six months.
FTX will ask U.S. Bankruptcy Judge John Dorsey in Delaware to approve the sale of its affiliates LedgerX, Emed, FTX Japan and FTX Europe as a way to raise capital for clients who could lose billions of dollars.
Last month, FTX founder Sam Bankman-Fried was indicted in Manhattan federal court on two counts of wire fraud and six counts of conspiracy for stealing customer deposits to pay off his hedge funds. Fund Alameda Research’s debt and lied to equity investors about FTX’s financial situation.
Fried has entered a plea of not guilty.
According to FTX’s court filing, the four affiliates FTX plans to sell are relatively independent of the broader FTX group, each with its own separate client accounts and separate management teams.
FTX has previously said the group is not committed to selling any of its affiliates, but has received dozens of unsolicited offers. FTX plans to arrange auctions in February and March, and it is expected to attract more bidders.
Prior to this, The US Trustee, the bankruptcy watchdog under the US Department of Justice, had already stated that it opposed FTX’s sale of these affiliates pending an extensive investigation into the alleged FTX fraud.
Fried has previously said that FTX’s risk management practices were indeed flawed, but that he does not need to be held criminally responsible. In addition to the loss of client funds, FTX’s collapse also cost equity investors an estimated billions of dollars.
In addition, FTX has also demanded that the names of its clients be kept secret for at least six months, despite objections from the Federal Bankruptcy Regulatory Office and the media. FTX also said that it may seek further extensions, depending on the court’s ruling.
Disclosing information about creditors, including 9.5 million customers, as required by general bankruptcy law, could expose them to fraud risks, violate privacy laws, and allow competitors to poach them, undermining the value of FTX, FTX said. looking for a buyer).
This plea by FTX is supported by its official committee of creditors and the FTX Special Client Group. But the media argued that creditors should not be allowed to anonymously fight for their fair share of funds.
Editor in charge: Liu Mingliang
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