Crypto exchange FTX will ask a U.S. bankruptcy court to allow it to auction off pieces of its business and to keep customer names secret for at least six months while it works to recover funds lost in what was allegedly a huge fraud
FTX will ask U.S. Bankruptcy Judge John Dorsey in Delaware to approve procedures for selling affiliates LedgerX, Embed, FTX Japan and FTX Europe as a way of raising funds for customers, who have lost potentially billions of dollars.
The crypto exchange has said it is not committed to selling any of the companies, but that it received dozens of unsolicited offers. FTX expects to generate additional bids by scheduling auctions in February and March.selling the affiliates before an extensive investigation can be done into the extent of the FTX fraud allegedly carried out by Bankman-Fried.
In addition to customer funds lost, the company's collapse has also cost equity investors potentially billions of dollars. Some of those investors were disclosed in a Monday court filing, including American football star Tom Brady, Brady's former wife supermodel Gisele Bündchen and New England Patriots owner Robert Kraft.
The company has argued typical bankruptcy rules which require disclosures about creditors, including as many as 9.5 million customers, could expose them to scams, violate privacy laws and allow rivals to poach them, undermining FTX's value as it hunts for buyers.
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