The bankrupt crypto trading platform FTX's crypto derivatives exchange LedgerX has been sold
to M7 Holdings, an affiliate of the U.S.-based exchange conglomerate
Miami International Holdings (MIH), for $50M in a bankruptcy auction.
The deal will allow MIH to enter the crypto trading business.
- The bankruptcy auction was initially expected to occur on April 12 but postponed until further notice in an April 10 filing.
- John
J. Ray III, the new CEO and restructuring head of the FTX Debtors, said
the agreement is an example of their continuing efforts to deliver
recoveries to stakeholders by monetizing assets.
- FTX's
U.S. arm, FTX US, acquired Ledger Holdings, the parent company of
LedgerX, with three licenses issued by the U.S. Commodity Futures
Trading Commission (CFTC), for $298M in 2021.
- The firm, rebranded as FTX.US Derivatives after the purchase, generated $1.2M in trading and clearing revenue last year.
- FTX, previously the third-largest crypto exchange, filed for Chapter 11 bankruptcy in November 2022, with all the 130 entities under the roof of FTX Group, including LedgerX.
- The downfall followed the claims that the exchange's former CEO, Sam Bankman-Fried (SBF), used customer funds in FTX to compensate for losses at FTX's sister company Alameda Research.
- SBF currently faces 13 charges, including bank fraud, money laundering, and bribery, to which he pleaded not guilty.
