FTX Receives Court Approval to Sell Certain Investment Assets and Subsidiaries

According to The Block, FTX has received court approval to sell certain investment assets and subsidiaries, authorizing and approving the sale or transfer of investments in private or public companies, including warrants, tokens and token warrants, shares, promissory notes , Future Equity and Future Token Interests, and also allows the sale or transfer of subsidiaries and other related interests, including limited partnership interests in venture capital and other investment funds. The approved sale process requires that the total selling price of each asset be less than or equal to US$1 million and "recognized investment value" (the initial amount paid by FTX to acquire or invest in the asset is less than or equal to US$5 million), for sale Fund assets, initial committed capital and total selling price must be equal to or less than $1 million. FTX liquidators filed a motion on Jan. 18 in which they said some investees expressed a strong incentive to buy back their FTX interest in order to facilitate raising more capital from other investors. The U.S. Delaware bankruptcy court granted the motion on Feb. 13, authorizing the sale or transfer of certain assets at a “relatively minimal value” compared to FTX’s total asset base. FTX’s original motion said there were roughly 185 investments of $1 million or less. According to a report by The Block Research, FTX and Alameda, through their various subsidiaries, have spent a total of about $5.3 billion on 473 investments, ranging from huge investments (like $100 million to Sui blockchain developer Mysten Labs) to small investments (such as $1 million checks to startups Limit Break and Messari). Alameda and FTX also invested approximately $837 million in 32 unique investment funds, including Sequoia Capital, Multicoin and Kraken Ventures.