SNEAK PEEK

• A Delaware bankruptcy judge has allowed FTX to sell its interest in Sequoia.
• The judge has declared that the $45 million sale has met the requirements of the U.S. bankruptcy law.
• FTX has appealed for an unspecified delay to the sale of stock-clearing business Embed.

It looks like things have certainly turned favorable for the bankrupt company FTX. After grabbing eyeballs for not-so-good reasons, such as NFTs hosted on the collapsed crypto exchange being impacted and Sam Bankman-Fried facing charges, a sigh of relief has arrived. 

The $45 million sale of FTX’s assets in Sequoia Capital Fund to the investment arm of Abu Dhabi has been approved by a Delaware bankruptcy judge, according to a court filing. 

Based on the document, FTX decided to be a part of the agreement with the purchaser based on its superior offer as well as the potential to execute the sale transaction in a short period of time.

According to a March 8 declaration requested by FTX, Judge John Dorsey mentioned that the sale to Al Nawwar Investments RSC Limited is in line with U.S. bankruptcy law’s requirements, which put limitations on the avoidance of an extremely quick divestment of assets.

Al Nawwar Investments RSC Limited is owned by Abu Dhabi’s government and is the buyer of the Alameda share. 

The bankrupt firm also asked for an indefinite delay to the sale of stock-clearing business Embed, which was conceived as a way to raise funds for outstanding creditors.

The sale hearing for Embed was meant for February 27 but was postponed and is now put on hold “until further notice.”

On November 11, FTX filed for bankruptcy, and under John J. Ray III’s management, the company has been trying to recover missing customer funds, which includes selling assets like its derivatives arm LedgerX as well as the European and Japanese units of the company.