Ledger X Derivatives Exchange of FTX Sold in Bankruptcy Auction to Miami International Holdings
According to a press release, M7 Holdings, an affiliate of Miami International Holdings (MIH), won the bankruptcy auction to acquire crypto derivatives exchange Ledger X. The expected total proceeds from the transaction are approximately $50 million.
According to audited financial statements viewed by the sources, FTX.US acquired Ledger Holdings, the parent company of Ledger X, in 2021 for $298 million. Ledger Holdings also includes the crypto hedge fund Ledger Prime, which stated it would return investor capital in September 2022.
The sale of Ledger X follows a turbulent auction process with multiple postponements. According to bankruptcy filings, a sale hearing was scheduled for April 12, but an April 10 filing stated that “the sale hearing regarding the sale of the Ledger X Business is postponed until further notice.”
In 2022, Ledger X generated $1.2 million in trading and clearing revenue and $17 million in negative EBITDA (earnings before interest, taxes, depreciation, and amortization), according to financial documents viewed those sources.
John J. Rray III, CEO and restructuring head of the FTX Debtors, stated in a press release, “We are pleased to reach this agreement with MIH, which exemplifies our ongoing efforts to monetize assets to deliver recoveries to stakeholders.”
Miami International Holdings is an American exchange conglomerate that owns multiple equities, options, and commodities markets. Having acquired the Minneapolis Grain Exchange (MGEX) in 2020, it already possesses the necessary licenses to operate a U.S. Commodity Futures Trading Commission (CFTC)-licensed commodities exchange. Currently,
MGEX offers only one non-index futures product for commodities: North American Hard Red Spring Wheat. The acquisition of Ledger X by Miami would enable the company to engage in crypto trading.
The U.S. division of the now-defunct crypto exchange FTX acquired Ledger X and rebranded it as FTX.US Derivatives. Ledger X holds three licenses issued by the CFTC, allowing it to list