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Bankrupt crypto firm FTX to sell LedgerX for $50 million

Published 25/04/2023, 20:27
© Reuters. FILE PHOTO: FTX logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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(Reuters) -FTX has reached an agreement to sell its crypto derivatives platform LedgerX LLC to an affiliate of Miami International Holdings Inc for $50 million, the bankrupt crypto exchange said on Tuesday.

FTX will seek U.S. bankruptcy court approval for the sale at a May 4 hearing.

"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," FTX CEO John Ray said in a statement.

Since filing for bankruptcy in November, FTX has recovered over $7.3 billion in cash and liquid crypto assets, the company reported earlier this month. It continues to sell assets as part of that effort, recently agreeing to sell its stake in Web3 startup Mysten Labs for $95 million.

The buyer, Miami International Holdings, owns the Bermuda Stock Exchange and several U.S.-registered securities exchanges, including the Miami International Securities Exchange. MIH confirmed the sale agreement but declined to comment further.

FTX filed for bankruptcy protection in the United States on Nov. 11 in the biggest crypto firm failure, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.

LedgerX, which is regulated by the U.S. Commodity Futures Trading Commission, was omitted from FTX's bankruptcy proceedings. FTX US acquired it last year to expand into crypto futures and options trading.

© Reuters. FILE PHOTO: FTX logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

FTX said earlier this month that it is working on a bankruptcy plan that would lay out how it intends to repay its creditors and customers. FTX may consider restarting or selling its crypto exchange as part of that process.

FTX founder Sam Bankman-Fried and several company insiders have been indicted on fraud charges for their role in the company's collapse. In contrast to Bankman-Fried's plea of not guilty, the former members of his inner circle have pleaded guilty and agreed to cooperate with prosecutors.

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