Shulou(Shulou.com)11/24 Report--

On the evening of January 11, Beijing time, it is reported that the digital cryptocurrency exchange FTX will today ask the US bankruptcy court to allow it to auction some of its business and keep the names of its customers secret for at least six months.

FTX will ask US bankruptcy judge John Dorsey of Delaware to approve the sale of its subsidiaries LedgerX, Emed, FTX Japan and FTX Europe to raise money for clients who could lose billions of dollars.

Last month, FTX founder Sam Bankman-fried was charged with two counts of wire fraud and six counts of conspiracy in federal court in Manhattan, accusing him of stealing client deposits to repay debts of his hedge fund Alameda Research and lying to equity investors about FTX's finances.

In this regard, Fred has pleaded not guilty.

The four subsidiaries that FTX plans to sell are relatively independent of the broader FTX group, each with its own independent customer account and independent management team, according to court filings by FTX.

FTX has previously said it is not committed to selling any of its subsidiaries but has received dozens of unsolicited offers. FTX plans to arrange auctions in February and March and is expected to attract more bidders.

Earlier, the Federal bankruptcy Regulatory Office (The bankruptcy. Trustee), the bankruptcy regulator under the U.S. Department of Justice, had said it opposed the sale of the subsidiaries by FTX before conducting an extensive investigation into the so-called FTX fraud.

Mr Fried has previously said that FTX's risk management practices are flawed, but that he does not need to bear criminal liability. In addition to customer capital losses, FTX's collapse cost equity investors billions of dollars.

In addition, FTX demanded that the names of its clients be kept secret for at least six months despite opposition from the Federal bankruptcy Regulatory Office and the media. FTX also said that a further extension may be sought, depending on the court's decision.

According to FTX, disclosure of information about creditors, including 9.5 million customers, as required by general bankruptcy laws, could expose them to fraud, violate privacy laws and allow competitors to poach them, undermining the value of FTX (FTX is looking for buyers).

FTX's request was supported by its official creditor committee and the FTX Special client Group. But the media argue that creditors should not be allowed to fight anonymously for the money they deserve.

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