FTX announced that it has reached an agreement with an affiliate of Miami International Holdings to sell LedgerX, its futures and options exchange and clearinghouse. FTX said it has reached an agreement with M7 Holding, a family-owned private equity firm based in Akron, Ohio.
The firm is an affiliate of Miami International Holdings, which operates several exchanges in the United States and abroad, including the Minneapolis Grain Exchange and the Bermuda Stock Exchange. FTX said in a statement that the total proceeds from the sale will be approximately $50 million.
The transaction still requires approval from the United States Bankruptcy Court for the District of Delaware. A hearing is scheduled for May 4. "MIAX announces that it has entered into an agreement to acquire LedgerX. Mark Wetjen, former Commissioner of the CFTC and later Head of Regulatory Policy + Strategy at FTX US, has served on LedgerX's board since 2015.
Wetjen was the CEO of MIAX Futures for almost 2 years."
FTX Sells LedgerX for $50 Million!
FTX.US acquired LedgerX in August 2021, to be able to expand its spot trading services. LedgerX is regulated by the US Commodity Futures Trading Commission (CFTC).
CFTC Chairman Rostin Behnam commented in December: "The limits of our authority stopped at LedgerX. For the same reasons we were barred from going beyond the regulated entity, FTX's other entities have not been able to able to outrun LedgerX and potentially take customers' money, which obviously, as a regulator, is the priority." The sale of LedgerX and other FTX assets was approved by the bankruptcy court in January after settling litigation between the US trustee and an ad hoc committee of 18 non-US clients.
The assets auctioned were Embed, LedgerX, FTX Japan and FTX Europe. At the time, 117 participants had expressed interest in these assets. John Ray III, CEO and chief restructuring officer of FTX, called the sale "an example of our continued efforts to monetize assets and ensure repayments to stakeholders."
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