Ripple Enters the FTX Rescue Line… The Collapse May End By Investing.com


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Investing.com – After the withdrawal that made matters worse, it seems that someone wants to enter the rescue line of one of the largest digital currency exchanges, FTX, whose collapse caused a stormy crisis in the crypto community.

And a few days ago, after announcing the entry into a rescue deal that could reach 500 million, Binance announced the withdrawal from the FTX rescue deal, which increased pressure on the digital currency platform, which declared bankruptcy.

interested

CEO Brad Garlinghouse said the company would be interested in FTX-owned companies serving business clients.

Ripple CEO Brad Garlinghouse is reportedly interested in buying certain parts of the collapsing exchange FTX.

Sam Bankman Connect

This came on the sidelines of Ripple’s Swell conference in London where Garlinghouse said former FTX CEO Sam Bankman-Fried contacted him two days before the company filed for bankruptcy as he sought to gather investors to save the business.

The Ripple CEO said that during the call, the two discussed whether there were FTX-owned companies that “Ripple might want to own.”

“Part of my conversation was that if he needed cash, maybe there were businesses he bought or owned that we would like to own would we buy some from him? I definitely think that was on the table.

Garlinghouse said that now that FTX has filed for Chapter 11 bankruptcy in the US, the potential treatment of FTX will be “quite different than it would have been for an individual.”

“I’m not saying we won’t look at these things — I’m sure we will, but it’s a tougher path to take,” says the Ripple CEO.

130 companies

Nearly 130 FTX affiliates, including FTX.US, have filed for bankruptcy in Delaware.

Some of the affiliates not included in the proceedings include crypto clearing house LedgerX, FTX Digital Markets, FTX Australia Pty and payments processor FTX Express Pay.

Garlinghouse said he would be interested in buying parts that serve commercial customers, and it appears that Ripple executives, like many in the industry, are following the latest developments in the FTX saga.

previous message

David Schwartz, Chief Technology Officer of Ripple, directed a message on Twitter to FTX employees, suggesting that there will be room at Ripple for them, as long as they are not involved in compliance, finance or business ethics.

FTX recently appointed restructuring management firm Kroll as its agent to track all claims against FTX and ensure that interested parties are notified of developments during the Chapter 11 bankruptcy case.

New FTX CEO John Ray said on Sunday that the bankrupt cryptocurrency platform is looking to sell or restructure its two global empires.

“Based on our review over the past week, we are pleased to learn that many of FTX’s regulated or licensed affiliates, both in the US and abroad, have stable balance sheets, responsible management, and valuable businesses,” said the CEO of FTX.

Ray, who replaced FTX founder Sam Bankman-Fried when the company filed for Chapter 11 bankruptcy protection on November 11, said it was a “priority” in the coming weeks to “explore sales, recapitalizations, or other strategic transactions with respect to these subsidiaries, among others.” “.

Permission to settle

In contrast, Ray’s statement came with a flurry of filings on Saturday morning in Delaware bankruptcy court. In these filings, FTX asked for permission to pay offshore sellers, consolidate bank accounts, and create new accounts.

FTX noted that it did not set a specific timeline for completing this process and said it “does not intend to disclose further developments unless and until it determines that additional disclosure is appropriate or necessary.”

FTX and authorities in the Bahamas are seeking jurisdiction over the bankruptcy process in two different US courts.

Last week, regulators in the Bahamas transferred hundreds of millions of dollars worth of digital assets into their private equity, and Bahamas authorities admitted this in a press release after FTX lawyers accused them of doing so in an emergency court filing.

Companies get away

Speaking, the CEO of FTX lauded some of the subsidiaries that have maintained their stability, and one such example is LedgerX, a commodity trading platform that is regulated by the relevant authorities.

LedgerX was one of the few FTX affiliates that is not part of the bankruptcy proceedings and is still operating today.

The platform, which was acquired by FTX in 2021, allows traders to buy, swap, and futures contracts on Ethereum.

More patience

FTX’s new CEO asked employees, vendors, customers, regulators and government stakeholders to “be patient” with them, and FTX said in its filing that there could be more than 1 million creditors in Chapter 11 cases.

FTX and its accountants identified 216 bank accounts across 36 banks with positive balances globally. The total cash balances across all entities were approximately $564 million, of which $265.6 million was held by LedgerX.

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