On Tuesday, FTX’s bankruptcy lawyers announced an agreement to sell the FTX-owned derivatives trading platform, LedgerX, to M7 Holdings for a sum of $50 million. This sale is part of the ongoing debt resolution process for the failed cryptocurrency exchange.
M7 Holdings, based in Akron, Ohio, is an affiliate of Miami International Holdings, Inc., a global provider of financial exchange operations and execution services. A court-organized auction for LedgerX took place on April 4, with M7 Holdings emerging as the highest bidder.
A sale also hearing has been set for May 4, 2023, during which the court will review and potentially approve the sale of LedgerX to M7 Holdings.
“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. Rray III, CEO of FTX Debtors.
FTX.US, a subsidiary of FTX, had acquired LedgerX in August 2021, bringing it under the FTX umbrella. Former FTX CEO Sam Bankman-Fried had expressed enthusiasm for the acquisition at the time, stating that FTX US Derivatives had become his primary focus.
Bankman-Fried had also mentioned FTX’s eagerness to collaborate with the Commodity Futures Trading Commission (CFTC) on innovation within the U.S. crypto derivatives market. “I think it’s incredibly important for the future of the ecosystem, and for our company, that we can bring the same level of liquidity and market access to the United States that people have had internationally,” Bankman-Fried said at that time.
Earlier this month, FTX revealed that they are developing a bankruptcy plan outlining their intentions for repaying creditors and customers. As part of this process, FTX might explore options to either relaunch or sell its cryptocurrency exchange.
You can read this article if you want more information about FTX’s re-starting.