It marks another step forward in the exchange's efforts to repay its creditors. The sale of LedgerX will result in an 83% loss for FTX.US, which had acquired the platform for almost $300 million in August 2021. The purchase price for LedgerX is $50 million, and the funds will go towards paying off FTX's creditors following its bankruptcy.
In a Delaware court, U.S. Bankruptcy Judge John Dorsey granted approval for the sale of LedgerX. The platform was regulated by the Commodity Futures Trading Commission (CFTC) and had its headquarters in Miami, Florida. Due to FTX's collapse, the Commodity Futures Trading Commission (CFTC) had been closely monitoring LedgerX, which remained financially stable while the crypto exchange was experiencing financial difficulties.
Miami International Holdings, which has subsidiaries such as MIAX, MIAX Pearl, MIAX Emerald, Bermuda Stock Exchange, and Minneapolis Grain Exchange, will now take ownership of the LedgerX platform. While it is unclear what the company's long-term plans are for the platform, the sale provides a light at the end of the tunnel for LedgerX.
FTX's CEO, John J. Ray III, has been working hard to ensure that the repayment to creditors takes place as smoothly as possible. The $50 million from the sale of LedgerX will provide some support in the bid to pay back the creditors. In December 2022, FTX had secured $1 billion worth of assets. However, the company still has billions to repay to its creditors.
The sale of LedgerX was under discussion as far back as December 2022, and at that time, discussions also included FTX’s European and Japanese digital assets subsidiaries. FTX is likely to continue to explore options to regain as many funds as possible to repay its creditors.
Overall, the approval for the sale of LedgerX is a positive development for FTX as it seeks to navigate its bankruptcy and repay its creditors. The sale will provide some funds for FTX's repayment efforts, and it remains to be seen what Miami International Holdings' long-term plans for LedgerX are.
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