Court approves sale of FTX’s clearinghouse LedgerX
Delaware-based Bankruptcy Court Judge John T. Dorsey today signed an order authorizing the sale of LedgerX, in response to a request by FTX representatives.
FTX has received court approval to sell certain investment assets and subsidiaries as some investees had expressed a strong motivation to repurchase its interests to facilitate raising additional capital from other investors. In April, its liquidators inked a deal to sell FTX’s digital asset derivatives platform and clearinghouse, LedgerX LLC, to an affiliate of Miami International Holdings Inc for $50 million.
According to the filing, investee entities will be given a five-day period to file an objection to the sale. If no objection is received during this period, FTX liquidators will be authorized to carry out the transaction without requiring any additional court order.
The Miami International Securities Exchange (MIAX) is a US-based options exchange that offers trading in equities and exchange-traded funds (ETFs). MIAX was founded in 2012 and is headquartered in Princeton, New Jersey, with additional offices in Miami, Florida.
MIAX has grown rapidly since its launch and has become one of the leading options exchanges in the US. In addition to its options trading platform, the exchange also offers a range of market data and analytics services.
Since its spectacular collapse in November, FTX lawyers have recovered more than $7.3 billion in cash and crypto assets as they seek to repay lenders and customers.
Earlier in January, a judge overseeing the FTX bankruptcy proceedings has given FTX’s liquidators the greenlight to kickstart bids to sell four functioning subsidiaries — including its Japanese and European units.
The businesses include custody platform and broker-dealer Embed, crypto derivatives exchange and clearing house LedgerX, FTX Japan and FTX Europe, which have reportedly attracted as many as 117 expressions of interest.
While the bankruptcy case could take years, a committee representing FTX’s creditors has prioritized the sale of certain entities. They argued that all these businesses have solvent balance sheets, independent management and valuable franchises, but they are at “risk of losing value if not sold quickly.”
Nevertheless, FTX’s entities have suffered regulatory pressures, also lost customers and employees.
