Key takeaways:
- The sale of LedgerX has been approved by the bankruptcy judge overseeing the case involving FTX.
- There were no objections made against the sale of LedgerX, according to attorneys who spoke at the hearing.
A motion authorizing the sale of LedgerX has been approved by the bankruptcy judge overseeing the case involving the cryptocurrency exchange FTX.
At a hearing on May 4 in the United States Bankruptcy Court for the District of Delaware, Judge John Dorsey allowed a request made by the FTX debtors in April to sell LedgerX to M7 Holdings, a division of Miami International Holdings. The overall proceeds of the transaction, according to FTX’s estimate at the time of the acquisition agreement, would be close to $50 million.
There were no objections made against the sale of LedgerX, according to attorneys who spoke at the hearing. A spokesperson for OKC USA Holding, one of the competing bidders for LedgerX, generally expressed no objection to the proceedings but added that the company reserves all rights to seek the appropriate relief in relation to a statement made by Bruce Mendelsohn, a partner for the FTX debtors’ investment banker.
Regarding OKC’s regulatory obligations to the Commodity Futures Trading Commission (CFTC) and the United States government, the attorney alleged Mendelsohn made “not true” comments. After reading all the paperwork and declarations relating to the motion, the judge declared that he was “satisfied” with the proceedings.
The court’s decision marked a development in FTX’s bankruptcy case and offered the chance for investors to be fully repaid after the company filed for Chapter 11 in November 2022. In connection with the proceedings, the bankruptcy court approved the sale of a few FTX firms in January.
LedgerX was acquired by FTX.US in August 2021. LedgerX was described as “healthy,” solvent, and operational” compared to other FTX firms by CFTC Chairman Rostin Behnam at a congressional hearing on the collapse of the cryptocurrency exchange.
The bankruptcy court has not yet ruled on a motion from several media sites asking that it divulge the names of some FTX customers. According to the motion’s opponents, people could become the prey of scammers and other criminal actors if some personally identifiable information is not allowed to be suppressed.
Former FTX CEO Sam Bankman-Fried, also known as “SBF,” is in criminal court awaiting his October trial. He is accused of breaking political finance regulations and illegally shifting FTX customer monies through Alameda Research. SBF was prohibited from utilizing internet messaging services as part of his bail restrictions as of March. He was primarily confined to his parents’ California house at the time of publishing.
Five legal and consulting firms recently billed the insolvent cryptocurrency trading site FTX a total of $36.4 million in March, according to court documents.
