FTX starts a strategic review and asks a judge for permission to pay important vendors

In one of the most well-known crypto meltdowns with losses in the billions of dollars, FTX filed for bankruptcy.

Collapsed cryptocurrency exchange FTX said on Saturday that it has launched a strategic review of its global assets and is preparing to sell or reorganize some companies.

FTX, along with some 101 subsidiaries, has sought legal assistance to enable the operation of a new global cash and payment management system for its VIP providers.

The exchange and its affiliates filed for bankruptcy in Delaware on November 11 in one of the largest cryptocurrency explosions, leaving an estimated 1 million clients and other investors facing billions of dollars in losses.

The company’s new CEO, John Ray, said in a statement that FTX will explore sales, recapitalization or other strategic transactions of some of its units.

In a court filing on Saturday, FTX requested permission to pay advance claims of up to $9.3 million to its major sellers after an interim order and up to $17.5 million after a final order is entered.

The exchange said that if he did not obtain the required legal assistance, it would cause “immediate and irreparable damage” to his business.

“Based on our review last week, we are pleased to learn that many of licensed and regulated affiliates, both inside and outside the United States, have strong balance sheets, responsible management and valuable franchises,” said FTX’s Ray.

In a separate court filing, the company said FTX had identified 216 debit bank accounts with positive balances as of November 16 but had only been able to verify balances in 144 so far.

The Company has appointed Perella Weinberg Partners LP as the lead investment banker to assist with the sale, subject to court approval.

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