FTX-owned derivatives trading platform LedgerX is reportedly preparing $175 million to be used in its parent firm’s bankruptcy proceedings.
The platform, which operated as a subsidiary of FTX.US, provided a regulated way for users to trade derivatives based on cryptocurrencies such as Bitcoin and Ethereum.
LedgerX was one of the few Bankman-Fried-linked projects which remained solvent in the aftermath of FTX’s Chapter 11 bankruptcy proceedings earlier this month.
As per anonymous sources reported by Bloomberg, the $175 million transfer could come as soon as Wednesday.
The funds, according to the sources, would stem from $250 million that the firm had earmarked to bid on the right to clear crypto derivatives trades without using third-party intermediaries.
This request, which would have been handled by the Commodity Futures Trading Commission (CFTC), was formally withdrawn on November 14.
A CFTC spokesperson informed Bloomberg that it was aware of the upcoming transfer.
FTX’s derivatives move with LedgerX
LedgerX only became part of the FTX fold relatively recently. The firm was first acquired in September 2021 for an undisclosed amount and then rebranded to FTX US Derivatives, following FTX’s $420 million fundraising involving 69 investors the same month.
According to a filing by corporate law firm Alvarez & Marsal North America, LedgerX was one of the more cash-rich parts of Bankman-Fried’s toppled crypto empire.
The filing found that LedgerX had around $303.4 million on its books, making it the second richest entity in the wider FTX ecosystem, holding more than the $171.7 million cash held by FTX’s Japanese unit FTX Japan K.K. but less than the $393.1 million held by Alameda Research.
Representatives from LedgerX and FTX.US have yet to respond to Decrypt’s requests for comment.
Since FTX slid into bankruptcy, a number of different parties have looked towards its remaining assets as part of attempts to pay back users and investors impacted by its debts. Yesterday, bankrupt crypto lender BlockFi filed a lawsuit against FTX founder Sam Bankman-Fried to obtain shares of trading app Robinhood that he allegedly pledged to the company as collateral.
With FTX owing $3.1 billion to its 50 biggest creditors, the queue for reimbursements is only set to grow longer.
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Source: https://decrypt.co/116046/ledgerx-preparing-175m-transfer-bankrupt-ftx-report
