FTX US Acquired LedgerX is UP for Sale, Find Here The Details

According to the report, FTX US acquired LedgerX is all-set for sale. The firm is one of few solvent pieces of FTX, and as per the report there are at least 10-firms which have shown interest in buying LedgerX.

LedgerX was excluded from the bankruptcy proceedings. Meanwhile FTX US acquired it in October 2021 to expand into crypto futures and options trading.

LedgerX is registered with the US Commodity Futures Trading Commission as a derivatives exchange. It was a cornerstone of SBF’s efforts in Washington. However it is also considered as one of the most valuable assets associated with FTX after more than 100 other entities filed for bankruptcy.

John J. Ray III, the New FTX Chief Executive Officer and restructuring advisers have been focusing over the company’s books in search of cash, cryptocurrency and assets that could be sold to help repay creditors.

As of now it is unclear how much LedgerX, which previously had around $303 Million in cash according to November 17, 2022 filing, may fetch in a sale.

The Potential Buyers for LedgerX

LedgerX is a crypto derivatives exchange which reportedly ‘UP’ for sale as reported late on December 02, 2022 by Bloomberg. The firm is now attracting interest from would-be buyers including crypto giants Blockchain.com, Gemini, Bitpanda and Kalshi, citing people familiar with the matter.

It must be noted that there is no immediate response received from any of these crypto firms over their interest in buying LedgerX.

As per the report, more than half a dozen other potential buyers interested in the crypto derivatives exchange, while some of the interested parties have signed non-disclosure agreements.

When FTX US bought it in the previous year, LedgerX looked for approval for a controversial plan to clear crypto derivatives trades without intermediaries. It withdrew its application with the CFTC as the corporate group of companies filed for bankruptcy.

LedgerX planned to make $175 Million available for use in FTX’s bankruptcy proceedings from a total of $250 Million fund which it set aside as part of that application.

CFTC Chairman Statement

The CFTC Chair Rostin Behnam stated in his recent statement that since 2017, LedgerX has been registered with the CFTC as a designated contract market (DCM), swap execution facility (SEF), and derivatives clearing organization (DCO). The firm is one of the few FTX entities to not file for bankruptcy.

Moreover, the CFTC has been in near-daily contact with LedgerX as well as the third-party custodians it uses to hold cash and digital assets. Based on the information presented to CFTC, at this time, LedgerX customer property remains secure and LedgerX has the financial resources to continue operating for the foreseeable future.