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FTX launches strategic review, seeks court relief to pay critical vendors

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Collapsed crypto exchange FTX said on Saturday it has launched a strategic review of its global assets and is preparing for the sale or reorganization of some businesses.

FTX, together with about 101 affiliated firms, also sought court relief to permit the operation of a recent global money management system and payment to its critical vendors.

The exchange and its affiliates filed for bankruptcy in Delaware on Nov. 11 in one in every of the highest-profile crypto blowups, leaving an estimated 1 million customers and other investors facing total losses within the billions of dollars.

FTX in a court filing on Saturday asked for permission to pay prepetition claims of as much as $9.3 million to its critical vendors after an interim order and as much as $17.5 million after the entry of the ultimate order.

The exchange said that if it fails to receive the requested court relief, it’ll end in “immediate and irreparable harm” to its businesses.

“Based on our review over the past week, we’re pleased to learn that many regulated or licensed subsidiaries of FTX, inside and outdoors of america, have solvent balance sheets, responsible management and precious franchises,” FTX’s recent Chief Executive Officer John Ray said.

The corporate has appointed Perella Weinberg Partners LP as its lead investment bank to assist with the sale process, subject to court approval.

“I respectfully ask all of our employees, vendors, customers, regulators and government stakeholders to be patient with us as we put in place the arrangements that corporate governance failures at FTX prevented us from putting in prior to filing our chapter 11 cases,” Ray said.

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