The latest developments involving the FTX brand suggest that the lawyers representing the company have launched a request from their end.
Their request is pertaining to gaining permission from the US Bankruptcy court so they can proceed with selling entities owned by FTX.
FTX Wants to Sell Multiple Entities
The latest reports suggest that the attorneys representing the FTX brand at the court have launched a new request. Their request is pertaining to some of the companies owned by FTX.
They want permission from the court so they can proceed with selling the particular entities. As per the lawyers, the brand wants to sell its platforms based in Europe and Japan.
They also want to have permission to sell Embed, a stock-clearing platform, as well as LedgerX, a derivatives exchange.
The Firms are Under Pressure
As per the report submitted by the lawyers at the court recently, the lawyers have claimed huge pressure is being exerted on the firms.
They have further elaborated that the regulatory authorities governing these firms in their respective jurisdictions have been putting a lot of pressure on them.
According to the law, such pressure merits the particular firms to go through the sale process. This brings the lawyers to launch a request that they must be allowed to sell the firms accordingly.
In their request, they have talked about the risks involved with the operations of these firms remaining suspended for a longer period.
They have claimed that the longer the operations of these firms remain suspended, the higher the chances of these firms losing the assets stored in them.
Another major concern they have is with the licenses. If these firms remain closed and suspended for a while, there is a high chance their licenses may get revoked.
Even if they get the chance to reopen, they will not be able to operate if their licenses have been revoked or canceled.
The situation of FTX Japan and FTX Europe
The request has been launched by the lawyers just when FTX Japan started making the right moves. The exchange has recently announced that it will start returning funds to investors in 2023.
The platform is currently suspended and it is barred to operate in Japan but it has requested for its operations to be reinstated.
The exchange has even come up with a business recovery plan that it wishes to implement and bring its business back to its high potential.
Despite the fact that the exchange wants to continue operating, the regulators in Japan prefer keeping its activities suspended.
It remains a mystery whether the regulator is going to allow the Japanese exchange to operate or not.
As for FTX Europe, the situation has taken the worst turn. This is because the license of the FTX Europe exchange has been revoked. This means that the operations of the exchange have been suspended.
It is no longer allowed to operate in the region and will need to go through the same process of acquiring approval before it can relaunch.
Businesses have to be resumed
The lawyers have also added that after the FTX exchange filed for bankruptcy on November 11, things went completely south.
The employees and the customers faced huge losses in the wake of the exchange going bankrupt. If they are able to sell the entities they have mentioned, they will be able to continue operating in other regions.
With their businesses coming back to normal, they will be able to cater to the needs of employees and customers. It all depends on the decision of the court, whether it approves the request or not.
The reason why the lawyers are asking to expedite the process of approving the requests is that they already have potential buyers lining up to buy these firms.
They have revealed that these entities are mainly independent so it will be a difficult process to sell them early. But they will have to do it so they can take care of other operations and businesses.
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