FTX Sells LedgerX for $50M to Miami-based Exchange

In the Brief:

  • Cryptocurrency exchange FTX sells LedgerX to M7 Holding for $50M.
  • The deal awaits approval by the US Bankruptcy Court.
  • FTX acquired LedgerX in August 2021 to expand its spot trading services

2 - 4 minute read

FTX, the cryptocurrency exchange, has announced that it has entered into a purchase agreement with an affiliate of Miami International Holdings to sell its futures and options exchange and clearinghouse LedgerX. The deal is set to total about $50 million and is still pending approval by the United States Bankruptcy Court for the District of Delaware, with a hearing scheduled for May 4.

Miami International Holdings is an operator of several exchanges in the United States and abroad, including the Minneapolis Grain Exchange and the Bermuda Stock Exchange. According to FTX, it reached a deal with M7 Holding, a family private equity investment firm based in Akron, Ohio, which is an affiliate of Miami International Holdings.

Mark Wetjen, former CFTC Commissioner and later head of policy and regulatory strategy at FTX US, has been sitting on the board of LedgerX since 2015. Wetjen was CEO of MIAX Futures for almost two years.

The sale of LedgerX and other FTX assets was approved by the bankruptcy court in January after overcoming a challenge by the U.S. trustee and an ad hoc committee of 18 non-U.S. customers. The assets heading to auction were Embed, LedgerX, FTX Japan, and FTX Europe. At the time, 117 parties had expressed interest in those assets.

FTX CEO and chief restructuring officer John Ray III called the sale “an example of our continuing efforts to monetize assets to deliver recoveries to stakeholders.”

FTX.US bought LedgerX in August 2021, enabling it to expand its spot trading services. LedgerX is regulated by the U.S. Commodity Futures Trading Commission (CFTC). CFTC chair Rostin Behnam commented in December: “The limitations of our authority stopped at [LedgerX]. For those same reasons that we were walled off from going past the regulated entity, the other FTX entities were not able to pierce through LedgerX and potentially take customer money, which obviously, as a regulator, is the priority.”

The Bottom Line

FTX’s sale of LedgerX to an affiliate of Miami International Holdings for $50 million is a strategic move to shed non-core assets and focus on its core business. Traders should monitor the developments surrounding the sale of other FTX assets, as it could provide insights into FTX’s future strategy.

Disclaimer: The content in this article is provided for informational purposes only and should not be considered as financial or trading advice. We are not financial advisors, and trading carries high risk. Always consult a professional financial advisor before making any investment decisions.

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