- FTX.US acquired the derivatives exchange LedgerX for nearly $300 million.
- With today’s approval, the transaction may proceed at a price of $50 million.
FTX’s loss-making sale of the derivatives trading platform LedgerX was approved by a U.S. court today. On Thursday, Judge John Dorsey swiftly approved the sale to M7 Holdings, a private equity firm.
When the United States Bankruptcy Court in Delaware approved a motion to allow the sale. LedgerX CEO Zach Dexter tweeted that he was “very pleased” to make the announcement. However, this sale is just the latest embarrassing chapter in the saga of FTX. Which began in August 2021 when the American-focused FTX.US acquired the derivatives exchange LedgerX for nearly $300 million.
$250 Million Loss
Sam Bankman-Fried, the former CEO of FTX and a suspect in a wide range of financial crimes, expressed his enthusiasm for the purchase last August, saying that offering derivatives to American clients was “one of the most important things” the FTX brand accomplished.
With today’s approval, the transaction may proceed at a price of $50 million. Thats a whopping $250M less than the purchase price. The plan is to make up for former customers who lost money after FTX’s catastrophic collapse. After FTX’s highly publicized Chapter 11 bankruptcy proceedings last November, the CFTC-regulated trading platform was one of the few FTX entities that remained financially stable.
The crypto exchange’s former CEO and co-founder was prominently featured in advertising all throughout San Francisco, giving money to both the Republican and Democratic parties, giving the impression that he was friendly with the political establishment.
However, the exchange collapsed suddenly and without warning in November of last year. Federal prosecutors say Bankman-Fried fraudulently mishandled the firm and have filed 13 counts against him, including wire fraud and conspiracy to launder money.
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