FTX Hires Bank to Sell Remaining Units

FTX's new management team has hired an investment bank to help the failed cryptocurrency exchange sell off its viable parts. They discovered that there are more than 200 accounts with positive cash balances.

John J. Ray, the new CEO of FTX, released a statement on Saturday that was slightly more optimistic about the company's chances of recovering assets. On Thursday, Ray had said that he had never seen anything as bad as FTX in his 40 years in the restructuring business.

"We are pleased to learn that many of FTX's regulated or licensed subsidiaries, both in the United States and abroad, have strong balance sheets, responsible management, and valuable franchises," said Mr. Ray, who was hired to oversee the company during its bankruptcy process, on Saturday.

The filing identified 216 bank accounts with positive balances, offering the possibility that there was some value left in FTX's wreckage for creditors to recover. It verified account balances worth about $564 million, according to the Saturday filing. However, much of that money is either held in outside entities that directly filed for bankruptcy protection or is considered restricted cash, meaning others may lay claim to it.

This month, the cryptocurrency exchange imploded after its chaotic finances spilled into public view. Prosecutors are now investigating its collapse. The company's founder Sam Bankman-Fried resigned as CEO on Nov. 11, when FTX filed for bankruptcy.

FTX is looking to preserve or sell its businesses in the coming weeks as part of a strategic review of the company's global assets. The goal is to "maximize recoverable value for stakeholders," according to a statement from FTX. The company has hired investment bank Perella Weinberg Partners LP to spearhead the sale of different business units and subsidiaries.

In a Saturday filing to federal bankruptcy court, FTX said it is still working to determine the total amount of cash that the crypto exchange or its related entities hold. The company said it has been able to verify the balances in only some of the bank accounts held at 36 banks worldwide, but that there have been historical cash management failures and deficiencies in documentation controls.

FTX is in the process of locating additional bank accounts by reviewing the available books and records, speaking with bank personnel, and conducting interviews with employees.

According to the filing, entities including FTX EU Ltd. and West Realm Shires Services Inc. have some of the largest verified account balances so far. To date, FTX's new management team has verified a total of $49.3 million in cash for FTX EU and $48.1 million for West Realm Shires Services.

FTX has also asked the court for permission to set up a new cash-management system. This would allow them to pay critical vendors and vendors at foreign subsidiaries. FTX has said that without this authority, they could face serious security risks, potential data loss, or other disruptions.

An FTX spokeswoman said late Friday that the company had fired three of Mr. Bankman-Fried's top deputies after Mr. Ray took over as CEO. The deputies who were fired were Gary Wang, an FTX co-founder and its chief technology officer; FTX engineering director Nishad Singh; and Caroline Ellison, who ran Mr. Bankman-Fried's trading arm, Alameda Research.