Bankrupt Crypto Exchange FTX Begins Strategic Review of Global Assets

FTX debtors are in talks with finserv company Perella Weinberg Partners over various attempted sales or reorganizations. However, PWP's engagement is subject to bankruptcy court approval.

As part of the recent bankruptcy filing, former crypto exchange FTX, along with 101 of 130 affiliates, announced the launch of a strategic review of their global assets. The review is an attempt to maximize recoverable value for stakeholders.

FTX, at the time led by CEO Sam Bankman-Fried (SBF), filed for Chapter 11 bankruptcy on November 11 after it was caught embezzling user funds. The bankruptcy filing was intended to cushion the losses of stakeholders related to FTX and affiliates, aka FTX debtors.

1/ Sharing a press release issued early today -

FTX launches a strategic review of its global assets. Text below (and link). https://t.co/wxz9MYnXrn

— FTX (@FTX_Official) November 19, 2022

FTX debtors are in talks with financial services firm Perella Weinberg Partners over various attempted sales or reorganizations. However, FTX warned that "PWP's engagement is subject to court approval".

Official Documents Filed with US Bankruptcy Court . Source: Kroll

SBF replacement CEO John J. Ray III confirmed that FTX subsidiaries have solvent balance sheets, which could be sold or restructured to reduce losses. While pointing out that some subsidiaries, such as crypto exchange LedgerX, are exempt as debtors in the bankruptcy filing, he added:

"Either way, it will be one of our priorities in the coming weeks to explore sales, recapitalizations or other strategic strategies...