Bankrupt exchange FTX decides to sell LedgerX

FTX reached a deal with M7 Holding to sell its options & derivatives trade platform LedgerX. 

FTX was a highly popular crypto exchange but in Nov 2022 the exchange collapsed badly because of the misuse of the customers’ funds. On 19 Nov 2022, FTX filed for bankruptcy under the Chapter 11 code in a US bankruptcy court along with 120 affiliated companies. 

On 26 April 2023, FTX announced that the exchange would sell its crypto platform LedgerX. 

LegderX is a crypto derivatives & options trade platform and it was acquired by FTXUS, an American subsidiary of FTX, in August 2021. 

A private equity investment firm M7 Holding will acquire LedgerX for $50 million. To complete this deal, FTX will first go through regulatory approval from the United States Bankruptcy Court for the District of Delaware, and a hearing on this deal is set for May 4.

The current FTX CEO John Ray said that the LedgerX sell plan is showing the continuous effort by the current FTX leadership team, which is continuously working to monetize the firm’s assets to provide better compensation to the FTX stakeholders.

FTX reboot plan

In early April of this year, FTX representative lawyers said that the current leadership team is planning to bring out a path to restart the services of the exchange by 2024 and also confirmed that the exchange successfully recovered more than $7 billion in funds. 

Recently Anthony Scaramucci, Skybridge Capital founder & former White House Director of Communications, noted that FTX is still not in a healthy position to bring services back to life. 

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