MIAX buys FTX’s clearinghouse LedgerX for $50 million
Liquidators of the bankrupt cryptocurrency exchange FTX have inked a deal to sell its digital asset derivatives platform and clearinghouse, LedgerX LLC, to an affiliate of Miami International Holdings Inc for $50 million.
The sale is subject to approval by the United States Bankruptcy Court for the District of Delaware, and a hearing on the matter is scheduled for May 4.
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.
“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 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.”
“The relative independence of each of the businesses’ operations from the remainder of the debtors’ core business operations make a potential sale process for each of the businesses relatively less complex,” the filing said.
Nevertheless, FTX’s entities have suffered regulatory pressures, also lost customers and employees.
The development came after FTX founder and former CEO Sam Bankman-Fried pleaded not guilty in New York federal court to criminal charges related to the collapse of his now-bankrupt exchange and Alameda Research.
The disgraced cryptocurrency legend was indicted on eight counts, including wire fraud and money laundering conspiracy, as well as charges of securities fraud and conspiracy to avoid campaign finance regulations. If convicted, the onetime crypto billionaire could face up to 115 years in prison.
