LedgerX to be Sold by FTX to M7 Holdings for $50M
- The creditors of FTX have approved the sale of LedgerX to an affiliate of Miami International Holdings (MIAX) for a price tag of $50 million.
- The purchase agreement with M7 Holdings is pending approval with the US Bankruptcy Court for the District of Delaware, and a hearing will take place on May 4.
- FTX CEO John Ray III called the sale “an example of our continuing efforts to monetize assets to deliver recoveries to stakeholders.”
- The creditors of FTX have approved the sale of the company’s four businesses: Embed, LedgerX, FTX Japan, and FTX Europe.
The creditors of the now-bankrupt crypto exchange created by Samuel Bankman-Fried, also known as SBF in the crypto space, have decided to sell the company’s subsidiaries and stakes in various other firms to recoup their money. As a result, popular futures and options exchange and clearinghouse LedgerX, which was purchased by the crypto exchange during the crypto market bull run in 2021 in October, a month before the leading crypto coin, Bitcoin (BTC), achieved an all-time high of $69,000.
The acquisition of LedgerX would place the clearinghouse under the US arm of the crypto exchange, FTX.US. Interestingly, the financial details of the deal were not disclosed, but the president of the US arm at the time, Brett Harrisson, revealed that the company had done over half a billion in acquisitions in 2021. It is also important to mention here that the acquisition of LedgeX came just after FTX raised $420,690,000 from 69 investors, including BlackRock and Tiger Global.
More importantly, the creditors have approved the sale of LedgerX to an affiliate of Miami International Holdings (MIAX), a company that offers options and high speed trading techniques along with technology solutions for the exchange industry. LedgerX is a clearinghouse that is regulated by the United States Commodity Futures Trading Commission (CFTC).
The sale agreement amounts to a total of $50 million, and it is pending approval from the United States Bankruptcy Court for the District of Delaware.
A Twitter user pointed out that Mark Wetjen, a former CFTC Commissioner who was later named the head of policy and regulatory strategy at FTX US, has been sitting on the board of LedgerX since 2015. Interestingly, prior to his position at LedgerX, he was the CEO of MIAX Futures for almost 2 years.
FTX confirmed that the hearing for its purchase deal with M7 Holding, a family private equity investment firm based in Akron, Ohio, which is the subsidiary of MIAX that is set to acquire LedgerX, will take place on May 4. It is important to mention here that MIAX operates several exchanges in the United States and abroad, including the Minneapolis Grain Exchange and the Bermuda Stock Exchange.
FTX CEO and chief restructuring officer John Ray III called the sale “an example of our continuing efforts to monetize assets to deliver recoveries to stakeholders.” It is crucial to note that Ray was paid $690,000 for his first two weeks on the job.
On the other hand, the creditors of FTX have approved the sale of the company’s four businesses: Embed, LedgerX, FTX Japan, and FTX Europe. As reported earlier by Bitnation, a San Francisco-based venture capital firm, Tribe Capital, plans to restart the crypto exchange and is planning to raise $250 million for the same.
In January, the co-founder of Tribe, Arjun Sethi, met with the Committee of Unsecured Creditors to discuss an informal proposal to restart the crypto exchange. Interestingly, the venture capital firm already had investments in FTX prior to its collapse. However, the Official Committee of Unsecured Creditors of FTX revealed that “there is no definitive timetable for a reboot or sale of the exchanges at this time.”
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
