FTX has finalized the deal to sell one of its subsidiaries, LedgerX, a futures and options exchange licensed in the United States and regulated by the Commodity Futures Trading Commission (CFTC).
LedgerX will be acquired by MIAX Technology (Miami Internal Holdings), a United States based company operating a global financial platform and execution service. After the court approved the sale of the unaffected subsidiary of the bankrupt crypto exchange, the company received offers from more than 115 interested bidders.
The final decision of the Bankruptcy Court to close the multi-million deal of selling the U.S. subsidiary will be ruled upon on May 4, 2023. Under the leadership of John J. Ray III, the current Chief Executive Officer and Chief Restructuring Officer of Sam’s bankrupt exchange has recovered around $740 million.
The yet-to-be-sold subsidiary is the only sale concluded by FTX after its Chapter 11 bankruptcy filing. Judge John Dorsey ruled the approval to sell LedgerX and other Japanese and European subsidiaries during a presentation in the U.S. Bankruptcy Court in the first week of January 2023.
The institutional derivatives exchange platform for digital currencies secured $13.9 million in four funding rounds. Lightspeed Ventures, Digital Finance Group, and MIAX Exchange Group are its lead investors. Google Venture was among the active investors of its company’s Series A funding round.
Casualties of the FTX Collapse
Earlier on April 23, 2023, TheCoinRepublic reported that one of the leading global pension funds – Ontario Teachers Pension Plan had lost $95 million after FTX’s unprecedented failure. Furthermore, the pension fund and its board members decided not to invest in any growing or leading crypto company after bearing severe losses from the third-largest exchange collapse.
Although the funds lost by the pension organization were 0.05% of its total assets, the community faced criticism over its investment in FTX. SBF has been accused of fraudulent activities. As per Crunchbase data, Pension Plan has invested in over 95 companies globally and acquired over 32 organizations.
According to CoinMarketCap, before the disastrous FTX, its native token was among the top 20 leading crypto tokens, and currently, it is ranked 212nd in the market. At press time, FTT was trading at $1.564 with a 24-hour trading volume of $18,899,693.
Some other major companies that have been in trouble after FTX’s demise are Galaxy Digital, Voyager Digital, CoinShare, Multicoin Capital, BlockFi, Galois Capital, Genesis Trading, Pantera Capital, and Celsius Network. The list of troubled firms islong. Some leading companies are yet to reveal their investment.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/04/27/ftx-selling-ledgerx-exchange-to-miax-tech-for-50-million/