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FTX to Sell LedgerX Exchange for $50 Million Amid Bankruptcy Recovery

FTX to Sell LedgerX Exchange for $50 Million Amid Bankruptcy Recovery

FTX continues to receive offers from companies despite the scrutiny it has undergone by US regulators in order to help it recover from bankruptcy or pay its creditors. On April 25, FTX announced the closure of a deal with a subsidiary of Miami International Holdings — MIAX Technologies — to sell LedgerX, a futures and options exchange licensed in the US and regulated by the CFTC. Approval from the US Bankruptcy Court is the only remaining step in completing the multimillion-dollar company sale, which is scheduled for May 4, 2023, subject to certain regulatory obligations and the absence of objections from the CFTC.

The Sale Will Monetize FTX and Meet Client Obligations

FTX Debtors’ CEO and CRO, John J. Ray III, said they are pleased to reach an agreement with MIH to finalize the sale of FTX’s US subsidiary, contributing to the monetization of the bankrupt exchange. “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 Ray. After completion of the deal, FTX debtors will receive approximately $50 million from MIH subsidiary M7 Holdings, which won the LedgerX auction held by the US Court on April 4.

Following its collapse, FTX initially had a debt of more than $3 billion, but over $740 million in funds have been recovered since John Ray took over the company. The new FTX administration is working to secure as much money as possible to repay creditors, and this sale is just one of many deals FTX has been able to conclude.

LedgerX Remained Solvent Throughout FTX Scrutiny

LedgerX was one of the FTX subsidiaries that remained solvent throughout the exchange’s scrutiny following the multimillion-dollar losses caused by its former CEO, Sam Bankman-Fried. Judge John Dorsey authorized the sale of the derivatives platform and other Japanese and European subsidiaries during a presentation in the US Bankruptcy Court in January 2023. Since then, FTX has received at least 117 offers from interested bidders to purchase its assets, but no formal agreement had been reached until now with any party that met the company’s needs. According to MIAX, the purchase agreement will allow the company to take control of all membership interests issued and pending by LedgerX, LLC (LedgerX) of Ledger Holdings, Inc. (LHI) “and certain of its affiliated entities, pursuant to which LHI is a party.”