A group of FTX customers has filed a limited objection to FTX’s plan to sell four independently functional subsidiaries. It is believed that the group laid the argument to have privacy to the sales process for ensuring representation of customer interests, as reported by Cointelegraph.
According to Cointelegraph, the group shared their concern that “misappropriated customer funds” may have been channeled towards keeping the firms functional. Reportedly, on December 4, 2022, the limited objection was put forward by an ad-hoc committee of non-US customers, which consists of 18 members having claims against FTX.
On the basis of information by Cointelegraph, insights from the filing stated that Securities and Exchange Commission and the Commodity Futures Trading Commission clarified that customer assets on the platform belong to customers and not FTX. Furthermore, the filing stated that there were “significant concerns over the lack of information regarding sale of the businesses,” and also questioned whether the businesses may be “necessary to a potential restart” of FTX. It is believed that the limited objection has been raised due to the exclusion of the ad-hoc committee from the sale process.
“The Ad Hoc Committee does not seek to stand in the way of value-maximizing transactions that the Debtors may pursue, so long as the interests of FTX.com customers are protected,” the committee stated.
Moreover, Cointelegraph noted that proposed bid procedures highlighted that only consulting professionals will be given permission to attend the auction and consult with FTX, on account of factors such as the sale process and that consultation parties lack control of the process outside of being able to provide counsel.
(With insights from Cointelegraph)