FTX Exploring Sale or Recapitalization of Healthy Subsidiaries, According to New CEO

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The new CEO of bankrupt crypto exchange FTX says the firm is looking at the prospect of selling and recapitalizing some of its subsidiaries in the coming weeks.

In a new statement, John J. Ray, who replaced Sam Bankman-Fried, says that a review of the firm’s affiliated companies shows that some of FTX’s subsidiaries are still solvent with responsible management and “valuable franchises.”

Among the healthier companies is derivatives platform LedgerX and white-label brokerage services provider Embed Clearing, which is not included in the bankruptcy proceedings. 

“It will be a priority of ours in the coming weeks to explore sales, recapitalizations or other strategic transactions with respect to these subsidiaries, and others that we identify as our work continues.”

The company says it is already preparing for the sale and reorganization of some its businesses. It has also engaged New York-based global financial services firm Perella Weinberg Partners as its lead investment bank subject to the approval of the court. 

Says Ray,

“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 place prior to filing our Chapter 11 cases.”

FTX filed for Chapter 11 bankruptcy earlier this month following a rush of withdrawals that led to insolvency. 

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