FTX to Sell LedgerX to California-Based M7 Holdings for $50M
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FTX to Sell LedgerX to California-Based M7 Holdings for $50M

In a Tuesday press release, FTX announced it is selling LedgerX to M7 Holdings, LLC, an affiliate of Miami International Holdings.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

In a press release published on Tuesday, April 25th, FTX announced it has reached an agreement to sell LedgerX to M7 Holdings, LLC, an affiliate of Miami International Holdings. LedgerX is a clearinghouse unit and futures and options exchange of FTX. The deal is yet to be approved by a bankruptcy court.

FTX’s LedgerX to Be Sold to an Affiliate of Miami International Holdings

This Tuesday, FTX announced its plan to sell LedgerX, the clearinghouse unit, and futures and options exchange of the company. According to the press release, M7 Holdings, LLC, a California-based global investment office and an affiliate of Miami International Holdings, will acquire the company for about $50 million.

FTX’s current CEO, John J. Ray, expressed his satisfaction with the deal stating that they are “pleased to reach this agreement with MIH, which is an example of our continuing efforts to monetize assets to deliver recoveries to stakeholders.” The agreement is, however, yet to be approved by a bankruptcy court.

While Ray described FTX as one of the worst failures of corporate controls he has ever seen quickly after taking over and expressed on multiple occasions his belief that asset recovery would be a major task, recent months brought several promising developments. Apart from releasing several progress updates since the start of 2023, the debtors have taken some more pointed and aggressive actions including a recent lawsuit against the Grayscale.

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Recent Developments in the Case of FTX’s Bankruptcy

The downfall of FTX has, since November’s filing, developed into several major sagas. The bankruptcy team under John J. Ray has been hard at work attempting to locate missing assets and funds. The team has also been releasing numerous revelations about just how mismanaged the company was under Sam Bankman-Fried with a recent report indicating that the company would frequently “misplace” tens of millions of dollars.

Another important part of the bankruptcy has been the case against SBF and FTX’s other executives. While the first month following the filing was relatively quiet, December brought a deluge of law enforcement activity which saw multiple senior personnel of the exchange plead guilty, and the arrest of Bankman-Fried himself. Additionally, the case has been developing ever since with a recent superseding indictment against FTX’s former CEO accusing him of bribery in addition to fraud.

Considering the size of FTX, it is unsurprising that its collapse caused a major contagion within the cryptocurrency industry. Perhaps the most notable casualties have been Genesis Global Capital—the company’s leading arm—and the crypto-friendly Silvergate Bank. Genesis Global Capital filed for bankruptcy after a January-long public feud between Barry Silbert and Gemini’s Winklevoss twins, while Silvergate announced its liquidation in March after suffering multiple hardships including an $8 billion worth bank run.

Editorial note (April 26th, 2023, 12:05 PM EST): The article was altered to correctly reflect the fact that only Genesis’ lending operation, and not the entire company filed for bankruptcy.

Editorial note (April 28th, 2023, 12:56 PM EST): The article was updated to clarify that M7 Holdings, LLC was the party in the transaction, an affiliate of MIH.

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Do you think FTX will manage to make its creditors entirely whole? Let us know in the comments below.