FTX asks court for relief to pay critical vendors amid strategic review

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

FTX, with about 101 affiliated firms, also sought court relief to allow the operation of a new global cash management system and payment to its critical vendors.

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

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

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

“Based on our review over the past week, we are pleased to learn that many regulated or licensed subsidiaries of FTX, within and outside the US, have solvent balance sheets, responsible management and valuable franchises,” said FTX’s new CEO, John Ray.

The company appointed Perella Weinberg Partners as its lead investment bank to help 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 place before filing our chapter 11 cases,” said Ray.

Reuters