FTX to sell its Japanese and European arm; Celsius Mining also puts up $1.3 million equipment for sale

FTX, under the management of new Chief Executive Officer John Ray, seems to be doing pretty well as the fund recovery took a new turn on Friday. However, FTX is not alone in this, as Celsius too is pushing its bankruptcy case by issuing a notice for selling $1.3 million worth of its mining equipment.

FTX gives up Japan and Europe

FTX, as per a court filing on Thursday, was granted permission by US Bankruptcy Judge John T. Dorsey to sell its businesses in order to raise funds.

The bankrupt cryptocurrency exchange asked permission to sell four of its businesses, including FTX’s European arm, Japanese arm, future and options platform LedgerX and another stock-clearing platform Embed. The funds recovered from this sale would be used to repay the customers and the creditors.

Headed by investment bank Perella Weinberg, the bidding for these businesses is expected to take place between mid-January and February 1. At the time of filing, about 117 entities have shown interest in buying one or more of these businesses.

The announcement of this sale came less than a week after FTX lawyers recovered over $5 billion in assets in the form of cash, liquid cryptocurrency and liquid investment securities.

Earlier anticipated to be around $1 billion, this amount exceeded expectations, allowing creditors to recover their money.

Celsius sells its miners

Celsius Network, along with FTX, is also making progress when it comes to bankruptcy proceedings. The cryptocurrency lending company filed with the bankruptcy court to issue the sale of its mining equipment worth $1.3 million.

The mining arm of the company stated that it would be selling about 2,687 of its MicroBT M30S ASIC mining rigs to Touzi Capital, an investment company.

The Celsius Network, which went bankrupt back in July 2022, has been struggling to repay its creditors, and for the same reason, its founder and CEO, Alex Mashinsky, was recently sued by New York Attorney General Letitia James.

James alleged that Mashinsky defrauded hundreds of thousands of customers by hiding the company’s deteriorating financial condition. The Attorney General also seeks to ban Mashinsky from ever conducting business in the state again, as well as recoup the losses suffered by the investors.