Bankruptcy crypto exchange FTX’s plans to sell digital currency futures and clearinghouse LedgerX, among other businesses, were challenged by the US Trustee on January 7, according to Reuters.
As per the submission, US Trustee Andrew Vara asked for an independent investigation before any sale, claiming that valuable information related to the bankruptcy of the exchange could be compromised. The document states:
“The sale of causes of action applicable to the directors, officers and employees of the Debtor, or any other person or entity, is not permitted until there has been a full and independent investigation of all persons and entities that may have been involved. any malfeasance, negligence or other conduct.”
In an effort to recover lost funds from exchange customers, FTX’s new management plans to sell units in Japan and Europe, along with derivatives exchange LedgerX and stock clearing platform Embed. In a filing from December 15, the lawyer representing FTX stated that the sale of the business will increase the value to the country of FTX.
Related: FTX customers want more info on FTX plans to sell subsidiary
FTX lawyers also think that the potential sale of the unit will be easier, since it was recently purchased and operated independently of FTX. The auction of the business is planned to begin in February with the sale to Embed, followed by three more auctions in March.
Japan’s FTX was subject to a business suspension and repair order in November amid the collapse of its parent company. FTX Europe has also had its license and operations suspended following a request from the Securities and Exchange Commission of Cyprus, Cointelegraph reported.
There are more than 110 parties interested in buying one or more of the 134 companies included in the bankruptcy process. FTX has signed 26 confidentiality agreements with partners.
FTX founder and former CEO Sam Bankman-Fried pleaded not guilty to all criminal charges related to the collapse of the crypto exchange on January 3, including wire fraud, securities fraud, and campaign finance violations.