Bankrupt crypto exchange FTX has agreed to sell its crypto derivatives platform LedgerX to M7 Holdings, an affiliate of Miami International Holdings, for $50 million.
FTX plans to seek approval for the sale in U.S. bankruptcy court on May 4, the exchange announced Tuesday.
"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 CEO John Ray said in a prepared statement.
The company announced its plans to sell LedgerX, along with three other functional businesses, in December, one month after its spectacular November downfall. Ray told the House Financial Services Committee that month that LedgerX, which is regulated by the Commodity Futures Trading Commission, was solvent, and that ultimately he would “look to sell LedgerX and put it in the hands of a good steward.”
FTX had acquired LedgerX just one year prior in October 2021, when the company — and the crypto sector — was in a very different financial position.
Since filing for bankruptcy, FTX has recovered more than $7.3 billion in cash and crypto assets, its legal team said earlier this month.
“The situation has stabilized, and the dumpster fire is out,” attorney Andy Dietderich told the court, according to a Reuters report.
However, the exchange is still “far away from an equity distribution,” he said.
Miami International Holdings, the parent company of LedgerX’s acquirer, owns several U.S. exchanges for equities, equity options, and commodities, as well as the Bermuda Stock Exchange.