FTX debtors announce LedgerX sale agreement
- LedgerX could be sold to M7 holdings after approval from the bankruptcy court
- The hearing on the sale will be held in the first week of May 2023
FTX, the infamous bankrupt crypto exchange, and its debtors announced that they have sketched an agreement for the sale of LedgerX on 25 April. The platform could be sold to an affiliate of Miami International Holdings – M7 Holdings with the firms signing an interest purchase agreement.
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Notably, M7 Holdings was not the only one aiming for LedgerX. Kalshi Inc – a federally regulated exchange – was also reportedly interested in the crypto platform.
Fresh money inflow for FTX Debtors
Recall that LedgerX rebranded to FTX US Derivatives after its acquisition by FTX US’ parent company – West Realm Shire Services. The now-bankrupt crypto exchange finalized the purchase plan for the platform in October 2021. The deal had also given FTX US access to CFTC-regulated Designated Contract Market, Derivatives Clearing Organization, and Swap Execution Facility.
Moreover, LedgerX was one of the only wings of FTX to remain solvent. Its parent company, along with other sister entities, filed for bankruptcy in November 2022. The bankruptcy court had given a green light for the sale of the platform in January 2023, along with some Japanese and European units. Additionally, there were around 117 expressions of interest for these units.
The deal with M7 Holdings will bring in around $50 million for FTX Debtors, according to the official press release. Moreover, the agreement is subjected to bankruptcy court approval. And, a hearing on the same will be held on 4 May 2023. The current CEO and Chief Reconstructing Officer – John J Ray III – said,
“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.”
FTX’s game winds down business
Subsequently, Storybook Brawl – a digital card game – announced that it would wind down business on 1 May 2023. The game came under the wing of FTX after it acquired Good Luck Games in March 2022 as part of the crypto entity’s push for expansion in blockchain gaming.
However, the bankruptcy of the firm had cast an air of uncertainty on the future game, with the platform even canceling its World Championship event. Storybook Brawl said on Twitter,
“On behalf of everyone on the SBB team, we’d like to thank you for your support. We’ve explored different options, and unfortunately there is no path forward. We’ll be shutting down the servers on May 1st – please enjoy SBB until then, and thanks for all the memories”