FTX announced that it has entered into a purchase agreement with a subsidiary of Miami International Holdings to sell its futures and options exchange and clearinghouse; LedgerX.
FTX said in a statement that the total proceeds from the transaction would be about $50 million. The transaction still requires approval from the United States Bankruptcy Court for the District of Delaware. The hearing on the operation is scheduled for May 4.
FTX stated that it had reached an agreement with M7 Holding, a family-owned private equity investment firm based in Akron, Ohio. This company is a subsidiary of Miami International Holdings, which manages several elanges in the United States and abroad, including the Minneapolis Grain Exchange and the Bermuda Stock Exchange.
MIAX announces that it entered into a purchase agreement to acquire LedgerX.
Mark Wetjen, former CFTC Commissioner and later head of policy + regulatory strategy at FTX US, has been sitting on the board of LedgerX since 2015.
Wetjen was CEO of MIAX Futures for almost 2 years. pic.twitter.com/zFZtqSou8I
—Wave (@waveninja1) April 25, 2023
MIAX announces that it has entered into a purchase agreement to acquire LedgerX.
Mark Wetjen, former CFTC Commissioner and later Head of Regulatory Policy and Strategy at FTX US, has served on the LedgerX board since 2015.
Wetjen was the CEO of MIAX Futures for almost 2 years.
The bankruptcy court cleared the sale of LedgerX and other FTX assets in January, after overcoming a challenge filed by the US trustee and an ad hoc committee of 18 non-US clients. The assets to be auctioned were Embed, LedgerX, FTX Japan and FTX Europe. At that time, 117 parties had expressed interest in such assets.
The CEO and Director of Restructuring of FTX, John Ray III, called the sale “an example of our continued efforts to monetize assets to provide recoveries to interested parties.”
FTX.US bought LedgerX in August 2021, allowing it to expand its spot trading services. LedgerX is regulated by the United States Commodity Futures Trading Commission (CFTC). CFTC Chairman Rostin Behnam commented in December:
“The limitations of our authority stopped at [LedgerX]. For the same reasons that prevented us from going beyond the regulated entity, the other FTX entities were unable to get through LedgerX and potentially take client money, which obviously, as a regulator, is the priority.”
FTX filed for bankruptcy in November.
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