A U.S. judge has approved the sale of LedgerX, a derivatives trading platform owned by FTX, to private equity firm M7 Holdings at a massive loss. The sale was authorized quickly and easily, with no objections voiced during the hearing. The move comes after FTX bought the CFTC-regulated trading platform for almost $300 million in August 2021.
However, following FTX’s Chapter 11 bankruptcy proceedings in November 2021, the platform will now be sold for just $50 million. The sale is intended to reimburse former clients who lost money in FTX’s bankruptcy.
FTX was known for enabling people to buy, sell, and bet on the future price of digital assets. The exchange’s co-founder, who appeared in advertisements across San Francisco and had political connections on both sides of the aisle, is facing 13 criminal charges, including wire fraud and conspiracy to commit money laundering.
A relief to LedgerX clients
FTX’s collapse in November 2021 was unexpected, with prosecutors alleging that the company was criminally mismanaged. Despite this, LedgerX remained solvent and is now being sold to M7 Holdings. The approval of the sale is expected to provide some closure to former clients who lost money in FTX’s collapse.
The sale of LedgerX, while providing some relief for former clients, marks another unfortunate chapter in the FTX saga. The exchange’s co-founder, who was once a rising star in the crypto world, is now facing serious criminal charges that have tarnished his reputation. The collapse of FTX last year was a major blow to the industry, and the sale of LedgerX at a significant loss is a painful reminder of its impact.
However, the sale also reflects the resilience of the crypto market, as LedgerX has managed to remain solvent and find a buyer despite the turbulence. It remains to be seen whether FTX’s co-founder will be found guilty of the charges against him, but for now, the focus is on the future of LedgerX under new ownership. The sale could provide a fresh start for the platform and its former clients, who are hoping to recover their losses and move on from the FTX debacle.
