FTX has had its assets in Sequoia Capital Fund sold to Al Nawwar Investments RSC Limited for $45 million after receiving approval from a Delaware bankruptcy judge. This comes as the company tries to recoup missing customer funds and manage its financial situation after filing for bankruptcy on November 11th, 2022.
The sale of FTX’s assets to Al Nawwar Investments RSC Limited was approved by Judge John Dorsey, who declared that the sale met US bankruptcy law requirements, which have measures in place to prevent unduly hasty divestment of assets. The investment arm of Abu Dhabi will now take over the assets in Sequoia Capital Fund.
In addition to this sale, FTX had planned to sell its stock-clearing business Embed as a quick way to raise funds for outstanding creditors. However, due to undisclosed reasons, the company has requested an indefinite delay to the sale, originally scheduled for February 27th. According to a separate court document, the hearing has been put on hold “until further notice.”
FTX has been under the management of restructuring expert John J. Ray III since its bankruptcy filing. The company has been attempting to recoup missing customer funds by selling various assets, including the derivatives arm LedgerX and its European and Japanese units. However, the delay of the Embed sale could be seen as a setback for the company’s efforts to stabilize its finances.
FTX has remained committed to its users and their funds despite this setback. The company reiterated its commitment to “maintaining transparency and honesty” throughout the bankruptcy process. FTX also thanked its customers for their patience and support during this difficult time.
As the cryptocurrency market continues to grow and evolve, the fate of FTX and other exchanges remains uncertain. However, with the approval of the sale of its assets in Sequoia Capital Fund and the leadership of John J. Ray III, FTX is taking steps to recover from its financial difficulties and move forward.
