FTX Authorized to Sell LedgerX to Repay Creditors: Court Decision

FTX, the bankrupt crypto exchange, has been granted permission by the US bankruptcy court to sell its crypto derivatives trading platform LedgerX for $50 million. This move is expected to raise additional funds to repay FTX’s creditors, as the exchange is currently attempting to repay an estimated $11 billion to customers through asset sales and clawback actions. Miami International Holdings, which owns the Bermuda Stock Exchange and several US-registered securities exchanges, will purchase LedgerX in the sale. FTX has recovered more than $7.3 billion in cash and liquid crypto assets since its bankruptcy filing in November. In a court filing, FTX said it will seek repayment of nearly $4 billion from Genesis Global Capital, the bankrupt lending arm of crypto firm Genesis, as a result of transactions that took place before FTX’s bankruptcy filing. Companies in the crypto lending industry were highly intertwined in a turbulent 2022 that saw many tumble into bankruptcy. Founder Sam Bankman-Fried has been indicted on fraud charges and former members of his inner circle have pleaded guilty and agreed to cooperate with prosecutors.