A recent report from the Delaware bankruptcy court revealed the law enforcers’ green-lighting of the sale of FTX crypto derivative platform LedgerX. The court decision compels the Bahamian crypto exchange to sell off its LedgerX at $50 million.
The May 4 court hearing was preceded by Judge John Dorsey, who pushed for the authorization of FTX’s LedgerX acquisition by Miami International Holdings (M7). It was reported that other court members supported Judge Dorsey’s proposal for the auction of LedgerX, with no objection.
FTX’s LedgerX Sale Plan Approved
Following the authorization of the LedgerX sale, the FTX chief executive of the derivative platform Zach Dexter expressed his delight concerning the court decision on Twitter. Dexter’s tweet illustrated that the funds generated from the sale of LedgerX would be used to settle creditors’ debts.
A scrutiny of LedgerX’s value revealed that the current sale plan would expose FTX to an 83% loss. It was reported that in August 2021, FTX purchased LedgerX in a sale deal amounting to $300 million.
During the acquisition of LedgerX, former FTX chief executive Sam Bankman-Fried mentioned the platform’s benefits. In his August statement, Bankman Fried stated that introducing the crypto derivatives platform in the US was a significant milestone.
In the meantime, the impending acquisition of the LedgerX platform by Miami International Holdings will enable FTX to accumulate a measurable amount, which will be used to repay creditors and customers.
A report from the new FTX chief executive, John J. Ray III, mentioned that the amount of assets FTX owes creditors is worth billions. Ray III confessed that the crypto exchange had sought suitable methods to compensate the creditors since 2022.
As of this writing, FTX requires roughly $3 million to settle the outstanding balance to the creditors. Ray added that in December 2022, FTX recovered assets worth $1 billion. He confirms that the crypto exchange is expected to close multiple sale plans in the coming days.
Strategies Implemented to Settle FTX Creditors’ Debts
Since the launch of LedgerX, the US Commodity Futures Trading Commission (CFTC) was mandated to supervise the operation of the crypto derivative. Even after the fallout of the FTX, the CFTC team continued to support the embattled crypto exchange.
From 2021 the LedgerX platform provided users with derivative sales for Bitcoin (BTC) and Ethereum (ETH) and crypto staking opportunities. After the sale, Miami International Holding is expected to announce the changes on the LedgerX operations.
Over the past, M7 Holdings has heavily invested in launching affiliate companies and crypto trading platforms in different states. Besides the acquisition, the FTX co-founder and top executive will continue to face potential legal action for committing crypto related crimes.
Recently, the FBI launched an investigation on Ryan Salame, who was accused of being involved in suspicious FTX political donations.