FTX launches strategic review, seeks legal aid to pay critical suppliers


(Reuters) – Collapsed crypto exchange FTX said on Saturday it has launched a strategic review of its global assets and is preparing to sell or reorganize some companies.

FTX, along with approximately 101 member companies, also sought legal assistance to enable the operation of a new global cash management system and payment to its critical suppliers.

The exchange and its affiliates filed for bankruptcy in Delaware on November 11 in one of the most high-profile crypto bursts, leaving an estimated 1 million clients and other investors with total losses in the billions of dollars.

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In a lawsuit Saturday, FTX sought permission to pay preliminary claims of up to $9.3 million to its critical suppliers after an interim order and up to $17.5 million after the entry of the final order.

The exchange said that if it does not receive the requested judicial relief, it will result in “immediate and irreparable harm” to its businesses.

“Based on our research over the past week, we are pleased to learn that many of FTX’s regulated or licensed subsidiaries, inside and outside the United States, have strong balance sheets, responsible management and valuable franchises,” FTX’s new Chief Executive Officer John said. Ray.

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The company has appointed Perella Weinberg Partners LP as its lead investment bank to assist in the sale process, subject to court approval.

“I respectfully ask all of our employees, vendors, customers, regulators and government stakeholders to bear with us as we make the arrangements that corporate governance failures at FTX prevented us from making before filing our Chapter 11 cases, Ray said.

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(This story has been re-archived to add the omitted word “and” in the fourth paragraph)

(Reporting by Akanksha Khushi and Abinaya Vijayaraghavan in Bengaluru; Editing by Kirsten Donovan)


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