FTX files to sell LedgerX along with its Japanese and European subsidiaries

While on the one hand, FTX is dealing with its Senate hearing, on the other, its management is looking to shed some of its assets. The now-bankrupt cryptocurrency exchange is looking to salvage whatever it can out of some of its functioning units, including its United States' derivatives wing, Ledger X.

FTX is looking to sell its parts

FTX filed a petition in the Bankruptcy Court of Delaware on December 15 to obtain permission to put some of its subsidiaries on sale. These include its international arms, FTX Japan and FTX Europe, as well as LedgerX and Embed Financial Technologies. The filing noted,

"Based on their preliminary review, the Debtors own or control a number of subsidiaries and assets that are regulated, licensed and/or largely not integrated into the Debtors' operations, within and outside of the United States. The Debtors believe a number of these entities have solvent balance sheets, independent management and valuable franchises."

Since these companies were acquisitions, most of them are not directly dependent on FTX for their operations, keeping their funds and assets separated from the parent organization. However, as per FTX's current CEO, John Ray's testimony at the congressional hearing, even these companies are not entirely independent of FTX, resulting in their bankruptcy filing.

At the time of filing, FTX reported that it had received over 100 bids for these companies. The bids differ in their proposition, which could include either one or more than one of these companies. The sale of these units would, in return, be of benefit to FTX's creditors and allow the exchange to minimize some of its liabilities, as stated in the filing,

"A sound business purpose for the sale of a debtor's assets outside the ordinary course of business exists where such sale is necessary to maximize and preserve the value of the estate for the benefit of creditors and interest holder."

FTT price nosedives

FTT price painted red on the charts for seven days straight despite the broader market noting mixed signals. Consequently, the altcoin invalidated the entire 25.77% of its recovery from December 9. 

FTT/USDT 1-day chart

In spite of that, FTT is still far from its all-time low of $1.215, as the cryptocurrency continued to trade at $1.352 at the time of writing.

Should the bearish cues persist, the crypto market could register a further decline, which could result in the FTT price establishing new lows below $1.215.