FTX will sell or restructure global empire, CEO says
FTX’s new CEO said on Saturday that the bankrupt crypto exchange is looking to sell or restructure its global empire, even as Bahamian regulators and FTX squabble in court filings and press releases about whether the bankruptcy filing should proceed in New York or in Delaware.
“Based on our review over the past week, we are pleased to learn that many regulated or licensed subsidiaries of FTX, within and outside of the United States, have solvent balance sheets, responsible management and valuable franchises,” FTX chief John Ray, said in a statement.
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Ray, who replaced FTX’s founder Sam Bankman-Fried when the company filed for Chapter 11 bankruptcy protection on Nov. 11, added that it is “a priority” in the coming weeks to “explore sales, recapitalizations or other strategic transactions with respect to these subsidiaries, and others that we identify as our work continues.”
Ray’s statement came with a flurry of Saturday morning filings in Delaware bankruptcy court. In those filings, FTX asked for permission to pay outside vendors, consolidate bank accounts, and establish new ones.
The exact timing of a possible sale is unclear. FTX indicated that it has not set a specific timetable for the completion of this process and said that it “does not intend to disclose further developments unless and until it determines that further disclosure is appropriate or necessary.”
Both FTX and Bahamas securities regulators are seeking jurisdiction over the bankruptcy process in two different U.S. courts. Last week, Bahamian regulators moved potentially hundreds of millions of “digital assets” from FTX custody into their own, acknowledging the deed in a press release after FTX attorneys accused them of doing so in an emergency court filing.
Ray singled out some of the company’s healthier subsidiaries for praise. One example was LedgerX, a Commodity Futures Trading Commission-regulated derivatives platform. LedgerX was one of the few FTX-related properties that are not a part of its bankruptcy proceedings and remains operational today. The platform, which FTX acquired in 2021, lets traders buy options, swaps and futures on bitcoin and ethereum.
The new FTX CEO asked that employees, vendors, customers, regulators and government stakeholders “be patient” with them.
FTX said in a filing that there could be more than one million creditors in these Chapter 11 cases.
FTX and its accountants had identified 216 bank accounts, across 36 banks, with positive balances globally. Cash balances across all entities totaled some $564 million, with $265.6 million of that in the custody of LedgerX on a restricted basis.
FTX attorneys also want to employ a “cash pooling system,” merging all the cash assets of each disparate FTX entity into one consolidated balance statement and in new bank accounts, which FTX is currently in the process of opening.
Notably, FTX attorneys wrote that they were “working, and will continue to work, closely with [existing FTX banks] to ensure that prior authorized signatories do not have access” to any prior FTX accounts that will continue to be used. Prior reporting and court filings have indicated that Sam Bankman-Fried held nearly absolute control over cash management and account access.
FTX’s bank accounts reflect the global influence of the crypto-asset empire. Institutions in Cyprus, Dubai, Japan and Germany held a wide array of global currencies. FTX subsidiaries held more than a dozen accounts at Signature Bank, an American institution that made an aggressive foray into servicing crypto customers in 2021. With the exception of one Bank of America account for Blockfolio, major American banks are unaccounted for on the list. Blockfolio was acquired by FTX in the summer of 2020.
In another petition, FTX lawyers moved to access $9.3 million for vendor payments that FTX called “critical.” No list was provided, but the FTX motion established criteria for “critical vendor” status.
In welcome news for customers, FTX attorneys applied to the court for permission to redact “certain confidential information,” including the names and “all associated identifying information” of FTX’s customers. “Public dissemination of [FTX’s] customer list could give […] competitors an unfair advantage to contact and poach their customers,” the filing read, potentially jeopardizing FTX’s ability to sell off assets or businesses.
FTX lawyers want the proceedings to continue in Delaware. Bahamas regulators, on the other hand, claim they do not recognize the authority of those Chapter 11 proceedings and want to hold a Chapter 15 process in New York.
Chapter 15 bankruptcy is the route that the defunct hedge fund Three Arrows Capital has pursued. The implosion of Three Arrows launched a spiraling crisis that has taken down Voyager, Celsius, and ultimately FTX.
The Chapter 11 process that FTX seeks would allow for restructuring or sale of the company to the highest bidder, although it isn’t clear who that might be. Rival exchange Binance initially made an offer before pulling it. That turnaround deepened a liquidity crisis at FTX and revealed a multibillion-dollar hole.
FTX’s first hearing in its bankruptcy court case is set for Tuesday in Delaware.
Environment
Eve Energy rolls solid-state batteries off new assembly line to power humanoids, flying cars
What a headline and what a future evolving before our eyes. Chinese battery expert EVE Energy inaugurated a new production base yesterday, and to celebrate the feat, rolled one of its new all-solid-state batteries off the production line.
EVE Energy Co., Ltd. is a Chinese battery manufacturer approaching 25 years in the industry. It develops, manufactures, and delivers lithium-ion batteries and energy storage systems to OEMs around the world.
The company’s current production footprint includes facilities in at least four regions of China, in addition to a plant in Malaysia and Hungary. In 2021, EVE shared plans to erect a new lithium-ion battery research and development center and manufacturing plant in Chengdu, in the Sichuan region of southwest China.
Since then, EVE Energy has made impressive strides beyond traditional lithium-ion cells and into highly coveted all-solid-state technology. Yesterday, EVE Energy officially opened its new solid-state battery production base in Chengdu and even produced one of its new “Longquan II” cells (pictured above).
EVE to build 500k solid-state cells per year in Chengdu
EVE Energy shared details of yesterday’s solid-state production base inauguration in a release today. The new 11,000-square-meter (118,400-square-foot) facility in Chengdu is officially open, but will continue development and expansion through 2026.
As initially announced in 2021, EVE Energy’s Chengdu facility will be constructed in two phases – the first of which is expected to be completed in December. Phase one will offer the capacity to manufacture 60-Ah batteries and EVE’s “Longquan II” solid-state cells – the first of which rolled off the production line yesterday.
The Longquan II is a 10-Ah all-solid-state cell with an energy density of up to 300 Wh/kg. Per EVE Energy, mass production of these ultra-dense cells will eventually power humanoid robots, uncrewed aerial vehicles, and AI equipment.
At its new Chengdu base, EVE has already vowed to fully commit funding, equipment, and R&D resources to achieve an energy density of 400 Wh/kg by 2025. The company also stated that this week’s production launch of the Longquan series “marks a crucial step forward for Eve Energy in solid-state battery industrialization.”
Following phase one’s completion by year’s end, EVE said phase two will bolster the facility’s annual production capacity to 500,000 cells, equating to 100 MWh by December 2026.
There was no mention of any specific solid-state cells developed for electric vehicles. Still, EVE Energy is inching toward mass production of the technology while producing higher energy densities to support automotive OEMs, perhaps one day.
Last year, Zhao Ruirui, executive vice president of EVE Energy’s research institute, shared plans to launch all-solid-state batteries for Chinese passenger cars in 2026, beginning with hybrid EVs.
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It’s official. Volkswagen is shaking up its EV naming strategy. After confirming the ID.2 will launch as the ID.Polo, Volkswagen promises its new family of entry-level EVs “will make electric driving more affordable than ever.” The ID.Polo is just the start with an electric T-Cross and much more coming soon.
Meet the Volkswagen ID.Polo
Volkswagen is reviving some of its most popular nameplates for its next-generation electric vehicles. Starting with the ID.Polo next year, Volkswagen will begin transferring names from ICE models to its new family of EVs.
The all-electric ID.Polo “is just the beginning,” according to Thomas Schäfer, VW brand CEO. As the production version of the ID.2all concept from 2023, the 25,000 euro ($29,000) entry-level electric car, the Polo EV, is expected to be a cornerstone of Volkswagen’s electrification strategy.
“A model like the Polo shows just how powerful a name can be,” Martin Sanders, Volkswagen’s sales boss, said, adding, “it stands for reliability, personality and history.”
The ID.Polo is just the start. Volkswagen has several new affordable EVs on the way, including the ID.Cross, an electric counterpart to the T-Cross.
Volkswagen said its new family of EVs marks the beginning of a new era, promising to make electric driving more affordable than ever.
The ID.Polo will evolve into an electric hot hatch, featuring a sporty GTI variant. Sanders said the ID.GTI Concept will go into production as the ID. Polo GTI, which is also launching next year. It will offer “outstanding dynamics and plenty of driving pleasure,” Sanders ensured.
Volkswagen will showcase the ID.Polo and ID.Polo GTI for the first time at the Munich Motor Show, starting on September 8.
The day before, September 7, Volkswagen will unveil the ID.Cross concept. It’s also slated to arrive in 2026 as the electric counterpart to its best-selling T-Cross SUV.
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Environment
Segway’s electric go-karts are joining forces with the world’s largest indoor karting chain
Segway just smashed the accelerator pedal on youth motorsports, teaming up with indoor karting giant K1 Speed in a new partnership that blends electric micromobility with high-octane (high-electron?) thrills and fun.
The collaboration will see Segway become the official sponsor of K1’s Junior and Teen Challenge GP leagues, while also putting Segway’s high-performance scooters and go-karts directly in front of the next generation of electric racing fans.
Segway will serve as the official sponsor of K1 Speed’s Junior and Teen Challenge GP leagues, a racing series that pits the best young go-kart racers against each other at K1 tracks across the country. Winners will even take home some fun prizes like the Segway GoKart Pro 2.
“Segway’s partnership with K1 Speed perfectly reflects our passion for performance, innovation, and inspiring the next generation of riders,” said Alex Connelly, head of emerging business development at Segway. “By bringing our products directly to K1 fans and powering the Junior and Teen Challenge GP leagues, we’re creating opportunities for more people to experience even more everyday thrills!”
K1 Speed operates over 100 locations across 30 states and 10 countries, all using fully electric go-karts, making this partnership a perfect alignment in both spirit and tech. “Segway’s incredible reputation as a front-runner in electric mobility aligns perfectly with our use of fully electric go-karts,” said K1 co-founder Susan Danglard.
The partnership also brings more access to Segway’s other micromobility products, such as their range of electric scooters that cover everything from commuting to high-performance riding. Segway’s most exciting electric vehicles, including the Max G3 e-scooter, F3 commuter scooter, GT3 performance scooter, and the GoKart Pro 2, are now available for purchase directly from K1’s website. That last one might be the most fun of all: the GoKart Pro 2 is a 3-in-1 electric vehicle that hits speeds of up to 27 mph (43 km/h), transforms into a self-balancing scooter, and even doubles as a racing simulator controller for PC gaming.
Oh, and yes… it’s designed for both kids and adults. So parents, don’t pretend you’re buying one just for the kids.
Electrek’s Take
We’ve seen branding deals before that are just that… all about branding. But this feels like much more than just a cross-promo play. It’s a real look at how electric mobility brands can build cultural relevance with young riders early – and maybe even help grow the next generation of e-racing pros while they’re at it.
By getting kids and teens into EVs, without the focus being on the EV itself, it helps cement the idea that these aren’t some new alternatives… they’re just the best way to build transportation devices, whether it’s for commuting, adventuring, or just plain fun racing!
K1’s electric karts are a bit faster than Segway’s, but they’re also built to be abused all day, every day. That Segway kart looks pretty fun for a personal option!
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