LedgerX could be the golden horse that gives FTX creditors hope of recovering some of their money.
A possible sale of crypto derivatives exchange, LedgerX, has attracted interest from several crypto firms. according to bloombergAt least ten companies have shown interest in the sale.
The report lists Blockchain.com, Gemini, Bitpanda, Kalshi, and six other undisclosed companies as interested companies. Other firms are suspected to have signed non-disclosure agreements and cannot be named.
Ledger X was acquired In October 2021 by FTX US and rebranded as FTX US Derivatives so that FTX can provide regulated crypto derivatives to its US clients. From then on, the firm became central to Sam Bankman-Fried’s Washington efforts.
While it was initially thought that FTX and its other subsidiaries also filed for Chapter 11 bankruptcy, CEO Zach Dexter vehemently denied this. according to dexterDespite the collapse of FTX, LedgerX remains solvent and well capitalised.
The firm is regulated by the US Commodity Futures Trading Commission (CFTC) and could become FTX’s cash cow. According to CFTC Chairman Rostin Behnum, the agency is communicating with LedgerX on a daily basis. The firm has also stopped using its rebranded name, FTX US Derivatives.
LedgerX sale may help finance FTX credits
LedgerX could be the golden horse that gives FTX creditors hope of recovering some of their money. Bloomberg reports that the firm had about $303 million in cash as of its Nov. 17 filing.
Recently, the firm set aside $175 million For use in the fast-paced bankruptcy case. The funds were withdrawn from a $250 million fund set aside for clearing derivatives. Prior to the collapse of FTX, the firm was seeking a license to carry out derivatives trading without intermediaries.
In the wake of the collapse, LedgerX withdrew its request and offered a portion of the funds for bankruptcy proceedings. The money would help settle some creditors who had sought interim relief from the bankruptcy court. The sale of the company could also provide much-needed liquidity to the company.
Some subsidiaries remain solvent
Meanwhile, the new FTX CEO, Mr. John J. Ray, has said that as some of its subsidiaries are insolvent, the court could allow a global cash management system that would pay important vendors and vendors in foreign subsidiaries.
In particular, Mr. Ray highlighted FTX Japan KK, FTX Turkey Technology Ve Ticaret A.S., FTX EU Limited, FTX Exchange FZE, and Quoine Pte. Ltd, and Zubr Exchange Ltd were declared bankrupt.
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