By
Chimamanda U. Martha
April 19th, 2024
FTX got the nod earlier this year to sell some of its business units.
The FTX exchange has now reached an agreement to sell its crypto derivatives platform LedgerX in a deal worth about $50 million. According to a Reuters report, FTX has agreed sale terms with an affiliate of Miami International Holdings Inc. However, the sale is still subject to approval from the US court overseeing FTX’s bankruptcy proceedings. To this end, a sale hearing has been slated for May 4, and hopefully, the exchange will be able to secure the necessary approval for the sale to go through.
FTX Keen on Helping Stakeholders to Recover Funds
It should be noted that FTX has been working tirelessly to raise the money it owes creditors. Since filing for bankruptcy in November, it has recovered no less than $7.3 billion in cash and liquid crypto assets. This is according to the most recent report that the FTX exchange published this April.
To make its work even easier, FTX got the nod earlier this year to sell some of its business units. So, selling LedgerX to MIH is a product of that approval, per FTX CEO John Ray. Ray said in a statement:
“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.”
Meanwhile, the FTX exchange still has several business units also lined up for possible sale. Some of them include FTX Europe, FTX Japan, and Embed Financial Technologies, among others. And according to court filings, about 117 potential buyers have so far expressed their interest in its various businesses. The firm continues to raise funds by all means necessary, recently agreeing to sell its stake in Web3.0 firm Mysten Labs. The deal is reportedly worth $95 million.
After raising these funds, it remains unclear, exactly how FTX intends to repay its creditors and customers. But there’s a possibility that it restarts its crypto exchange which was an industry giant at some point. Or it may also sell the exchange as part of its recovery process. Nonetheless, Skybridge Capital founder Anthony Scaramucci believes that a revival is highly unlikely.