After the collapse of FTX, which was once the biggest crypto exchange in the world and now is nothing, it is now facing bankruptcy proceedings. According to a report, LedgerX, an FTX US derivatives trading platform, is preparing a $175 million to be used in the bankruptcy proceedings of the FTX exchange, which is its parent company.
LedgerX operated as a subsidiary of FTX.US and provided a regulated way for users to trade derivatives based on cryptocurrencies, like Bitcoin and Ethereum. It was the only project of FTX that remained solvent after FTX’s Chapter 11 bankruptcy proceedings on the 11th of November.
According to the 30th of November report from Bloomberg, the $175 million transfer could come soon in a few days. According to the report, the funds will come from the $250 million that the firm had reserved to bid on the right to clear crypto derivatives trades without utilizing third-party intermediaries.
This fund request was withdrawn on the 14th of November, and Commodity Futures Trading Commission was the firm that handled it. A spokesperson from CFTC informed Bloomberg that it was aware of the upcoming transfer. Before September 2021, LedgerX was working independently, but after this date, it became part of the FTX fold. FTX acquired it for an undisclosed amount and then rebranded it to FTX US Derivatives. After this acquisition, FTX raised $420 million in funding from around 69 investors.
According to a 17th of November filing by Alvarez & Marsal North America, a corporate law firm, LedgerX was one of the more cash-rich parts of the FTX founder’s collapsed crypto empire. LedgerX was the second richest entity in the wider FTX ecosystem, as it had around $303.4 million on its books, according to the filing.
However, regarding the confirmation of the $175M transfer in FTX exchange’s bankruptcy proceedings, no one from FTX US or LedgerX responded.