FTX bankruptcy lawyers agreed on Tuesday to sell LedgerX, the FTX-owned derivatives trading platform, to M7 Holdings. The interest purchase agreement is expected to fetch $50 million for debtors of the failed cryptocurrency exchange.
Based in Akron, Ohio, M7 Holdings is an affiliate of Miami International Holdings, Inc., a global operator of financial exchanges and execution services. On April 4, the court held the auction of LedgerX, with M7 Holdings entering the winning bid.
“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,” said FTX CEO and Chief Restructuring Officer John J. Ray III.
A sale hearing is scheduled for May 4, 2023, to review and approve the sale of LedgerX.
LedgerX came under the FTX banner in August 2021 when FTX subsidiary FTX.US acquired it. At the time, former FTX CEO Sam Bankman-Fried voiced his excitement over the development, saying that FTX US Derivatives commanded most of his attention.
Bankman-Fried said that FTX looked forward to working with the Commodity Futures Trading Commission (CFTC) on “innovating in the U.S. crypto derivatives space.”
“I think it’s incredibly important for the future of the ecosystem, and for our company, that we can bring the same level of liquidity and market access to the United States that people have had internationally,” Bankman-Fried said on Decrypt’s gm podcast.
In November, FTX, FTX US, Alameda Research, and more than 100 affiliates filed for bankruptcy in Delaware. Although Ledger X was not listed in the bankruptcy proceedings as a debtor, a sale order notice was filed under seal in Delaware’s U.S. Bankruptcy Court on February 21, 2023.