FTX's LedgerX Derivatives Exchange Sold to Miami International Holdings

M7 Holdings, an affiliate of Miami International Holdings (MIH), won the bankruptcy auction to buy crypto derivatives exchange LedgerX, according to a press release. The total proceeds from the deal is expected to be about $50 million for the debtors.

FTX.US purchased Ledger Holdings, the parent company of LedgerX, for $298 million in 2021. Ledger Holdings also includes the crypto hedge fund LedgerPrime.

LedgerX's sale comes after a tumultuous auction process that included multiple postponements. A sale hearing was expected to occur on April 12, according to bankruptcy filings, but an April 10 filing said that "the sale hearing regarding the sale of the LedgerX Business is postponed until further notice."

LedgerX generated trading and clearing revenue of $1.2 million and posted negative EBITDA (earnings before interest, taxes, depreciation and amortization) of $17 million in 2022.

"We are pleased to reach this agreement with MIH, which is an example of our continuing efforts to monetize assets to deliver recoveries to stakeholders," said John J. Rray III, CEO and restructuring head of the FTX Debtors.

Miami International Holdings is a U.S.-based exchange conglomerate that owns several equities, options and commodities exchanges. It already holds the licenses to operate a U.S. Commodity Futures Trading Commission (CFTC)-licensed commodities exchange, having acquired the Minneapolis Grain Exchange (MGEX) in 2020. Miami's acquisition of LedgerX would allow the company to enter into crypto trading.

LedgerX was purchased by the U.S. entity of now-bankrupt crypto exchange FTX and rebranded as FTX.US Derivatives. LedgerX holds three CFTC-issued licenses, which allow LedgerX to list futures contracts for commodities, provide clearing services and broker futures trades for customers.

(Source: CoinDesk)