TL;DR:
- FTX bankruptcy lawyers have agreed to sell LedgerX, the derivatives trading platform owned by FTX, to M7 Holdings for $50 million to help pay off the failed crypto exchange’s debts.
- This acquisition comes amidst continuing efforts to untangle FTX’s Chapter 11 bankruptcy.
- M7 Holdings, an affiliate of Miami International Holdings (MIH), plans to enter the crypto trading space with this acquisition, which will allow the company to leverage LedgerX’s three licenses issued by the U.S. Commodity Futures Trading Commission.
LedgerX Sold
On Tuesday, FTX’s bankruptcy lawyers agreed to sell LedgerX, the derivatives trading platform owned by FTX, to M7 Holdings for $50 million. This sale is expected to fetch proceeds for the debtors of the failed cryptocurrency exchange and could help to pay off FTX’s debts. This acquisition comes amidst continuing efforts to untangle FTX’s Chapter 11 bankruptcy. A sale hearing is scheduled for May 4, 2023, to review and approve the sale of LedgerX.
The sale of LedgerX comes after the tumultuous auction process, which included multiple postponements. Although Ledger X was not listed in the bankruptcy proceedings as a debtor, a sale order notice was filed under seal in Delaware’s U.S. Bankruptcy Court on February 21, 2023. According to financial documents viewed by CoinDesk, LedgerX generated trading and clearing revenue of $1.2 million and posted negative EBITDA (earnings before interest, taxes, depreciation and amortization) of $17 million in 2022.
FTX.US purchased Ledger Holdings, the parent company of LedgerX, for $298 million in October 2021, according to audited financial statements viewed by CoinDesk. Ledger Holdings also includes the crypto hedge fund LedgerPrime, which said it would return external capital to investors in September 2022. The sale of LedgerX for $50 million is significant as it shows a decline in the value of the asset since FTX’s acquisition in 2021.
Miami International Holdings
Miami International Holdings, which owns several equities, options, and commodities exchanges, including the Minneapolis Grain Exchange, is a U.S.-based exchange conglomerate that already holds licenses to operate a U.S. Commodity Futures Trading Commission (CFTC)-licensed commodities exchange. With the acquisition of LedgerX, the company plans to enter the crypto trading space. LedgerX holds three CFTC-issued licenses, which allow LedgerX to list futures contracts for commodities, provide clearing services, and broker futures trades for customers. This acquisition will allow Miami International Holdings to leverage LedgerX’s licenses and expertise in the crypto derivatives market. The acquisition of LedgerX by Miami International Holdings is a significant move that shows the interest of established players in the traditional finance space in entering the crypto derivatives market.
The sale of LedgerX to M7 Holdings is expected to generate $50 million in proceeds for FTX’s debtors, which could help pay off the failed crypto exchange’s debts. The acquisition of LedgerX by M7 Holdings, an affiliate of Miami International Holdings, will allow the company to leverage LedgerX’s three licenses issued by the U.S. Commodity Futures Trading Commission and enter the crypto trading space. The acquisition is a significant move that shows the interest of established players in the traditional finance space in entering the crypto derivatives market.
Thanks for reading Solanews , remember to follow our social media channels for more