U.S Court Approved Sale of LedgerX by FTX for $50 Million
The U.S. Bankruptcy Court in Wilmington, Delaware, granted permission to the bankrupt crypto exchange FTX to sell its
U.S Court Approved Sale of LedgerX by FTX for $50 Million
The U.S. Bankruptcy Court in Wilmington, Delaware, granted permission to the Bankrupt Crypto Exchange FTX to sell its LedgerX business for $50 million, raising additional funds to repay creditors.
The judge John Dorsey had swifty signed off on FTX's sale of LedgerX, its non-bankrupt crypto derivatives trading platform, to an affiliate of Miami International Holdings.
Miami International Holdings owns the Bermuda Stock Exchange and several US-registered securities exchanges, including the Miami International Securities Exchange.
As part of its attempt to repay approximately $11 billion to its customers, FTX was selling assets and taking clawback actions in an attempt to recoup the money.
Since November after filing for bankruptcy, FTX had recovered more than $7.3 billion in cash and liquid crypto assets, the company reported in April.
As part of its wider efforts, FTX said it would seek the repayment of nearly $4 billion from Genesis Global Capital (GGC), the bankrupt lending arm of cryptocurrency firm Genesis.
In its lawsuit FTX said that Genesis owed money to it as a result of transactions that took place shortly before FTX's bankruptcy filing.
Under U.S. bankruptcy law, debtors can try to claw back payments made in the 90 days before a bankruptcy filing so that those funds can be more equitably distributed among creditors.
According to FTX, Genesis was a primary ‘feeder fund’ for FTX-affiliated hedge fund Alameda Research, loaning Alameda crypto assets that it used for further loans and investments.
FTX also submitted that at one point, Alameda held $8 billion in loans provided by Genesis. Unlike other creditors, Genesis was largely repaid before FTX went bankrupt, FTX said.
Previously, in 2022 Companies in the crypto lending industry were facing high turbulence and many declared themselves to be bankrupt.
A once-prominent crypto exchange, FTX had filed for Chapter 11 amid allegations that founder Sam Bankman-Fried used FTX customer’s money to prop up Alameda’s balance sheet.
As a result of his role in the collapse of the company, Bankman-Fried was charged with fraud and had pleaded not guilty to the charge. Former members of his inner circle had pleaded guilty and agreed to cooperate with prosecutors.