Despite intensive scrutiny by US regulators, FTX continues to receive offers from companies that could help it bounce back from bankruptcy – or at least pay its creditors.
On April 25, the former crypto giant announced the closure of a deal with a subsidiary of Miami International Holdings (MIAX Technologies), a US company operating global financial platform and execution services, to finalize the sale of LedgerX, a futures and options exchange licensed in the US and regulated by the CFTC.
According to the announcement, the only remaining step is approval from the US Bankruptcy Court, scheduled for May 4, 2023, to complete the multimillion-dollar company sale. This is subject to the fulfillment of certain regulatory obligations and the absence of objections from the CFTC.
FTX Debtors are pleased to reach an agreement for the sale of LedgerX to MIH. Read details here: https://t.co/wfiJFuFwBw
— FTX (@FTX_Official) April 25, 2023
John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors, said they are pleased to have reached an agreement with MIH to finalize the sale of one of FTX’s US subsidiaries, contributing to the monetization of the bankrupt exchange.
“We are pleased to reach this agreement with MIH, which is an example of our continuing efforts to monetize assets to deliver recoveries to stakeholders.”
Upon completion of the deal, FTX debtors will receive approximately $50 million from M7 Holdings, the MIH subsidiary that won the LedgerX auction held on April 4 by the US Court.
After its collapse, FTX had a debt of more than $3 Billion, according to initial scrutiny. Shortly after John Ray took over the company, over $740 million in funds were recovered. The new FTX administration is doing everything possible to secure as much money as possible in order to repay creditors. This sale is just one of a series of deals that FTX has been able to conclude.
LedgerX was one of the FTX subsidiaries that remained solvent throughout the exchange’s scrutiny following the multimillion-dollar losses caused by its former CEO, Sam Bankman-Fried.
Considering this, Judge John Dorsey authorized the sale of the derivatives platform, as well as other Japanese and European subsidiaries, during a presentation in the US Bankruptcy Court in early January 2023.
Since then, FTX had received at least 117 offers from various interested bidders to purchase the exchange’s assets. However, until now, no formal agreement had been reached with any party that met the company’s needs.
According to MIAX, the purchase agreement will allow the company to take control of all membership interests issued and pending by LedgerX, LLC (LedgerX) of Ledger Holdings, Inc. (LHI) “and certain of its affiliated entities, pursuant to which LHI is a party.”
The post FTX to Sell LedgerX Exchange for $50 Million Amid Bankruptcy Recovery appeared first on CryptoPotato.
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