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The sale of a few subsidiaries and investment assets by FTX has been given court clearance.
According to a study by The Block Research, FTX and Alameda invested 473 investments totaling almost $5.3 billion through different companies. The amount of money invested ranged from huge cheques, such as $100 million into Mysten Labs, the company that created the Sui blockchain, to several smaller ones, including $1 million checks into firms Limit Break and Messari.
In a motion submitted on January 18 by the exchange’s liquidators, it was stated that several investors had expressed a strong desire to acquire FTX’s holdings in order to allow obtaining more funding from other investors.
On February 13, the request was granted by the U.S. bankruptcy court for the district of Delaware, approving the sale or transfer of specific assets with “relatively de minimis worth” in comparison to the entire asset base of FTX. According to FTX’s original motion, 185 investments totaling less than $1 million were made.
Including shares, promissory notes, future equity interests, future token interests, warrants, tokens, and warrants on tokens, as well as investments in privately or publicly owned enterprises, the order allows and approves the sale or transfer of these types of assets. Additionally, it permits the sale or transfer of affiliates and other relevant interests, such as limited partnership stakes in investment funds and venture capital.
Sequoia, Multicoin, and Kraken Ventures are just a few of the 32 different investment funds that Alameda, and FTX invested almost $837 million in.
The filing stated that the Debtors must provide at least weekly updates on the status of any potential sales or transfers of De Minimis Assets or Fund Assets, including the receipt by the Debtors of any offers and the entry into or completion of any Sales with respect thereto. These updates must be provided to the firms serving as legal counsel and lead financial advisors to the Official Committee (the “Consulting Professionals”) and the U.S. Trustee.
The “confirmed investment value,” which refers to the initial sum paid by FTX to acquire or invest in the asset, must be less than or equal to $5 million in order for the approved sale procedures to be followed. Additionally, the total selling price of each asset must be less than or equal to $1 million. The original capital pledged and the total selling price must both equal or be less than $1 million in order to sell fund assets.
The document stated that the investee entities will have five days to submit an objection to the transaction. Without additional court authorization, FTX liquidators will carry out the deal if there is no opposition.
On February 13, the court order was signed by U.S. bankruptcy judge John Dorsey.
