Ledger Holdings Inc., a provider of institutional brokerage services, sold its subsidiary derivatives exchange LedgerX on Wednesday in a bankruptcy auction. FTX.US acquired Ledger Holdings Inc. for $298 million in 2021.
Bankrupt FTX Layers on Tuesday agreed to an agreement with M7 Holdings LLC, an affiliate of Miami International Holdings Inc., to sell FTX’s owned crypto derivatives exchange LedgerX LLC, according to a press release.
Through an interest purchase agreement, venture capital and angel investor M7 Holdings LLC secured the deal, with FTX Debtors anticipating receiving $50 million.
However, the hearing for this sale was repeatedly postponed. The sale hearing, which was originally scheduled for April 12 but was “postponed until further notice” two days prior to the court’s hearing (on April 10), according to the bankruptcy filing.
The new CEO of FTX and American lawyer John J. Ray III discussed his thoughts on the agreement with Miami International Holdings Inc. “We are pleased to reach this agreement with MIH,” John continued, “an example of our continuing efforts to monetize assets to deliver recoveries to stakeholders.”
The transaction is subject to the customary closing requirements, specifically approval from the US Bankruptcy Court. The transaction approval hearing, however, for the transaction amount of approximately $50 million that has not yet been given to FTX debtors, is set for May 4, 2023.
The borrowers’ funding burden is being gradually reduced by FTX’s cryptocurrency exchange. Tribe Capital recently announced that it would hold a $250 million fundraising event and contribute an additional $100 million in an effort to save FTX.
Compiled by Coinbold