FTX to sell its Ledger X derivatives platform

FTX has announced it will be auctioning off its derivatives platform LedgerX to interested bidders on April 4th. The FTX’s U.S. operation acquired LedgerX in late 2021 and subsequently rebranded it as FTX.US Derivatives.

This latest news came after a notice of revised dates was filed on March 18th by the counsel for FTX. The auction will take place on April 4th at the offices of Sullivan & Cromwell and a hearing will follow on April 12th to finalize the sale. 

Notification of the winning bidder will be provided within one business day of the auction’s end.

Previously, the auction had been scheduled for March 7th and was later rescheduled to March 22nd, but reasons for the additional revision were not given. 

FTX has been granted approval to sell other business units to generate funds for creditors, including FTX Japan, FTX Europe, and Embed Financial Technologies. More than 117 parties have expressed interest in buying up parts of FTX, according to a legal filing. 

FTX collapsed last year, 2022 following a series of assurances that the operations of the trading platform were in order despite rumours of illiquidity and its troubling balance sheet. The exchange eventually went down in early November leaving millions of users in pain because of the resulting financial loss.

The sale is part of the bankruptcy winding-up process and could provide funds if it struggles to settle its creditors. 

What do you mean by this article? Share your comments below.