The request of bankrupt cryptocurrency exchange FTX to sell its subsidiaries to provide liquidity has been challenged by the US Board of Trustees.
According to Reuters on Jan. 8, FTX has to provide liquidity. LedgerX plans to sell its 4 establishments, including “dangerous for litigation” Member of the U.S. Board of Trustees Andrew Vara objected by.
Stating that information about the FTX bankruptcy may be jeopardized in the event of sales, Vara said, “should not be allowed until a full and independent investigation into the organizations has been made.” he said:
The sale of any entity or company that may be associated with FTX’s bankruptcy process should not be permitted until all possible misconduct, negligence or other potential suspicions have been cleared and a full and independent investigation has been undertaken. Otherwise, the transparency and impartiality of the case may be impaired.
FTX lawyers before LedgerX, FTX Japan, FTX Europe and Embed reported to the court its plan to sell the subsidiaries. Lawyers representing FTX argued that selling these entities would maximize the value of the FTX property.