FTX-Owned Trading Platform LedgerX to be Sold for $50 Million to M7 Holdings
FTX bankruptcy lawyers have agreed to sell the cryptocurrency derivatives trading platform LedgerX to M7 Holdings for an expected $50 million. M7 Holdings is an affiliate of Miami International Holdings, a global operator of financial exchanges and execution services. The sale agreement was made on April 4 following the auction of LedgerX. However, a sale hearing is scheduled for May 4, 2023, to review and approve the terms of the agreement.
LedgerX joined the FTX portfolio as a result of FTX’s acquisition of its subsidiary FTX.US in August 2021. Sam Bankman-Fried, FTX CEO at the time, expressed his enthusiasm at the announcement, with FTX US Derivatives becoming the focus of his attention. According to Bankman-Fried, FTX was set to work with the Commodity Futures Trading Commission in the US on innovating in the country’s cryptocurrency derivatives space.
FTX announced its bankruptcy in November of the same year, alongside FTX US, Alameda Research, and more than 100 affiliates. Although LedgerX was not listed as a debtor in the bankruptcy proceedings, a sale order notice was filed under seal in Delaware’s US Bankruptcy Court on Feb 21, 2023. The sale of LedgerX is viewed as a means to monetize assets and deliver recoveries to FTX’s stakeholders.
“We are pleased to reach this agreement with MIH, which is an example of our continuing efforts to monetize assets to deliver recoveries to stakeholders,” said FTX CEO and Chief Restructuring Officer John J. Ray III.
M7 Holdings of Akron, Ohio, has purchased LedgerX, the FTX-owned Derivative trading platform, for an expected $50 million. FTX declared bankruptcy in November 2021, with over 100 affiliates filing as well. Although LedgerX was not listed as a debtor in the bankruptcy proceedings, a notice was filed under seal in Delaware’s US Bankruptcy Court on Feb. 21, 2023.
FTX CEO at the time of the acquisition of
-owned subsidiary LedgerX, Sam Bankman-Fried, stated that the company was excited to collaborate with the Commodity Futures Trading Commission in the US to foster crypto-derived financial services. The sale to M7 Holdings is a direct means of monetizing neglected assets that also packages with customer’s interest.
The agreement represents an affordable financial instrument that employs one or more assets represented by a recognized derivative pricing model to cover or closely simulate acquisition risk. It is widely sensationalized since it utilizes acquired assets as margins. The sale offers a much-needed settlement to FTX stakeholders.
[h/t Jason Nelson]