FTX Agrees to Sell LedgerX for $50 Million, to Seek Bankruptcy Court Approval on May 4

FTX has reached an agreement to sell its crypto derivatives platform LedgerX to an affiliate of Miami International Holdings for $50 million (roughly Rs. 400 crore), the bankrupt crypto exchange said on Tuesday.

FTX will seek US bankruptcy court approval for the sale at a May 4 hearing.

“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,” FTX CEO John Ray said in a statement.

Since filing for bankruptcy in November, FTX has recovered over $7.3 billion (roughly Rs. 79,800 crore) in cash and liquid crypto assets, the company reported earlier this month. It continues to sell assets as part of that effort, recently agreeing to sell its stake in Web3 startup Mysten Labs for $95 million (roughly Rs. 780 crore).

The buyer, Miami International Holdings, owns the Bermuda Stock Exchange and several US-registered securities exchanges, including the Miami International Securities Exchange. MIH confirmed the sale agreement but declined to comment further.

FTX filed for bankruptcy protection in the United States on November 11 in the biggest crypto firm failure, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.

LedgerX, which is regulated by the US Commodity Futures Trading Commission, was omitted from FTX’s bankruptcy proceedings. FTX US acquired it last year to expand into crypto futures and options trading.

FTX said earlier this month that it is working on a bankruptcy plan that would lay out how it intends to repay its creditors and customers. FTX may consider restarting or selling its crypto exchange as part of that process.

FTX founder Sam Bankman-Fried and several company insiders have been indicted on fraud charges for their role in the company’s collapse. In contrast to Bankman-Fried’s plea of not guilty, the former members of his inner circle have pleaded guilty and agreed to cooperate with prosecutors.

© Thomson Reuters 2023

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