FTX’s LedgerX Up for Sale as Restructuring Course of Picks Up

(Bloomberg) — LedgerX, one of many few solvent items of Sam Bankman-Fried’s crumbled FTX empire, is on the market and attracting curiosity from would-be patrons together with crypto giants Blockchain.com and Gemini, based on individuals acquainted with the matter.

Most Learn from Bloomberg

The unit, which is registered with the US Commodity Futures Buying and selling Fee as a derivatives trade, was a cornerstone of Bankman-Fried’s efforts in Washington. It’s additionally thought of probably the most precious property related to FTX after greater than 100 different entities filed for chapter.

New FTX Chief Government Officer John J. Ray III and restructuring advisers have been poring over the corporate’s books in the hunt for money, cryptocurrency and property that might be offered to assist repay collectors. It’s unclear how a lot LedgerX, which had about $303 million in money as of a Nov. 17 submitting, might fetch in a sale.

Along with Blockchain.com and Gemini, crypto trade Bitpanda and occasion contracts buying and selling platform Kalshi, which can be registered with the CFTC and makes use of LedgerX to clear trades, have expressed curiosity, the individuals stated. There are about half a dozen different potential patrons and extra might be added, stated one of many individuals.

Representatives for LedgerX, FTX, Blockchain.com, Gemini and Kalshi didn’t reply to requests for remark. Bitpanda Chief Government Officer Eric Demuth stated in an e mail that the agency wasn’t or contemplating the acquisition.

In an indication that talks have gotten extra critical, at the very least among the events have signed non-disclosure agreements, among the individuals stated.

After FTX US bought it final 12 months, LedgerX sought approval for a controversial plan to clear crypto derivatives trades with out intermediaries. The agency withdrew its utility with the CFTC as the company group of corporations filed for chapter.

Story continues

As early as Wednesday, LedgerX deliberate to make $175 million out there to be used in FTX’s chapter proceedings from a $250 million fund the corporate put aside as a part of that utility.

CFTC chairman Rostin Behnam beforehand informed lawmakers his company is in every day communication with LedgerX amid the FTX turmoil. The potential sale wasn’t mentioned.

–With help from Hannah Miller.

(Updates with Bitpanda CEO remark in fifth paragraph.)

Most Learn from Bloomberg Businessweek

©2022 Bloomberg L.P.