Crypto derivatives exchange LedgerX, previously owned by FTX and its debtors, has been acquired by M7 Holdings, a subsidiary of Miami International Holdings, for an estimated $50 million.
LedgerX, a crypto derivatives exchange subsidiary owned by FTX and its debtors, has been sold to M7 Holdings, a subsidiary of Miami International Holdings (MIH), for an estimated $50 million in total.
LedgerX is transferred by FTX to Miami International Holdings
A US-based exchange company called Miami International Holdings is the owner of numerous trading platforms. It bought the Minneapolis Grain Exchange (MGEX) in 2020 and has a license to run a commodities exchange in the US. Now that LedgerX has been acquired, the business can start trading cryptocurrencies.
The money from M7 Holdings, which won the bankruptcy auction for the purchase, will go to the creditors of the defunct bitcoin exchange.
“We are pleased to have reached this agreement with MIH, which is an example of our continuing efforts to monetize assets to deliver recoveries to stakeholders,” stated John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors.
Selling FTX Assets
Through its American affiliate, FTX US, FTX acquired Ledger Holdings, the parent organization of LedgerX, in 2021 for a rumored $298 million. The Commodity Futures Trading Commission (CFTC) has granted LedgerX, a cryptocurrency derivatives exchange, three licenses that allow it to list futures contracts for commodities, offer clearing services, and broker futures trades. The platform now goes by the name FTX.U.S. Derivatives.
LedgerPrime, a cryptocurrency hedge fund that returned outside capital in September, was another asset controlled by LedgerX’s holding firm.
LedgerX functioned independently with little exposure to its parent, although being owned by corrupt FTX. LedgerX, according to Coindesk, reported a negative EBITDA of $17 million in 2022 and produced trading and clearing income of $1.2 million.
To sell LedgerX and three other subsidiaries, its European and Japanese firms, as well as the stocks trading platform Embed Technologies, the FTX management asked the court for permission. It claimed that while having little exposure to the parent company, all of these platforms, recently bought by FTX, are experiencing regulatory backlash and must be sold in order to maintain their worth. In January, a US judge authorized the sale of all four firms.
The other three FTX subsidiaries are still up for sale even though LedgerX found a buyer. But FTX debtors made no public announcements about any sale or bids on them.
The FTX companies in Japan and Europe have since started accepting customer withdrawals. Within hours of the withdrawals being resumed, $50 million was taken out of the platform, according to information provided by FTX Japan. FTX Europe did not, however, provide any updates.