FTX plans to sell LedgerX, its US-based cryptocurrency derivatives exchange to M7 Holdings. M7 Holdings is a subsidiary operating from New Jersey and operates an options platform.
It is estimated that the bankruptcy estate for Sam Bankman Fried’s former cryptocurrency exchange will generate 50 million dollars from this transaction.
Miami International Holdings, the owner of M7 Holdings, runs MIAX (the Miami International Securities Exchange), a derivatives 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,” John J. Ray III is the CEO of FTX and its chief restructuring officer.
The court has scheduled an hearing for Judge John T. Dorsey of United States Bankruptcy Court District of Delaware to approve the sale on May 4.
MIAX collaborated with Lukka, a crypto-data provider, last year to create a new suite of derivatives. MIAX expects the LedgerX deal to increase its crypto footprint.
LedgerX auction was originally set for March but took place April 4th. FTX’s US affiliate purchased LedgerX for an unknown sum in October 2021. This opened up crypto derivatives trading to local users.
Earlier this year, FTX secured approval to sell LedgerX and sell three other affiliated businesses — while they still carried value — to generate funds to pay back creditors.
The bankruptcy lawyers of FTX stated that the entities were insolvent “solvent balance sheets, independent management and valuable franchises.” FTX stated that over 100 parties were interested in purchasing the business.
FTX Chief Executive Ray said separately that Miami’s LedgerX was independent of FTX operations. These were allegedly rife in fraud. FTX is believed to have over one million creditor, of which the 50 largest owe $3billion.
“My understanding is that LedgerX maintains segregated customer accounts as well as its own books and records in accordance with applicable [Commodity Futures Trading Commission] regulations,” He said.
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