The judge presiding over the bankruptcy case of cryptocurrency exchange FTX has approved a motion allowing the sale of LedgerX.
In a May 4 hearing in the United States Bankruptcy Court for the District of Delaware, Judge John Dorsey approved a motion by FTX debtors filed in April to sell LedgerX to M7 Holdings, an affiliate of Miami International. Holdings. FTX said at the time of the purchase agreement that the total proceeds from the transaction would be about $50 million.
According to the lawyers who intervened in the hearing, there were no objections to the sale of LedgerX. A representative speaking on behalf of OKC was not largely opposed to the proceedings, but said the company “reserves all its rights to seek appropriate compensation” in connection with a statement filed by Bruce Mendelsohn. The attorney claimed Mendelsohn made “false” statements regarding OKC’s regulatory obligations to the Commodity Futures Trading Commission and the US government.
“Well, it’s been easy,” Dorsey said, referring to the brief hearing. The judge said that he had read all the papers and statements related to the motion and was “satisfied” with the procedure.
The court’s decision marked a step forward in FTX’s bankruptcy case and the possibility for investors to recover their money after the company filed under Chapter 11 Bankruptcy in November 2022. The bankruptcy court approved the sale of certain FTX entities in January as part of the proceeding.
FTX.US bought LedgerX in August 2021. During a congressional hearing looking into the exchange’s collapse, Commodity Futures Trading Commission Chairman Rostin Behnam stated that LedgerX was “healthy”, “solvent” and “operating” compared to other FTX entities.
The bankruptcy court has yet to rule on a petition from various media outlets requesting that the identity of some FTX clients be revealed. Opponents of the motion have suggested that not allowing certain personal information to be redacted could make people targets for scammers and bad actors.
In criminal court, former FTX CEO Sam Bankman-Fried awaits his October trial, where he faces charges including allegedly moving funds from FTX clients through Alameda Research and violations of funding laws. of electoral campaigns. In March, he was banned from using online messaging apps as part of his bail conditions. Currently, Bankman-Fried is confined to his parents’ home in California.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.