Crypto derivatives exchange and clearinghouse LedgerX is for sale, with Blockchain.com and Gemini among those interested in acquiring the firm, Bloomberg reported late Friday.
LedgerX is regulated by the US Commodity Futures Trading Commission (CFTC), and has been a subsidiary of FTX US since October 2021. LedgerX is one of the few solvent entities remaining in the FTX group of companies, Bloomberg noted.
At least 10 companies have expressed interest in purchasing LedgerX, the report said. These include the exchanges Blockchain.com, Gemini, Bitpanda and Kalshi, a CFTC-regulated platform specializing in trades based on the outcome of events. About six others could also have interest in buying the company, Bloomberg wrote, citing a person familiar with the matter.
Twitter direct messages sent to both LedgerX and its CEO Zach Dexter were not returned by press time.
LedgerX is planning to make $175 million available for use in FTX’s bankruptcy proceedings, Bloomberg reported on Nov. 29. It would come from a $250 million fund LedgerX was planning to use for a CFTC application aimed at getting regulatory approval to “clear crypto derivatives trades without intermediaries,” according to Bloomberg.
LedgerX was requesting CFTC approval to offer products that were not fully collateralized, an agency announcement shows. The derivatives exchange withdrew that application on Nov. 11 — the same day FTX and more than 100 subsidiaries filed for Chapter 11 bankruptcy protection.
In a Nov. 17 tweet, Dexter told customers LedgerX is “solvent and well-capitalized” and clarified that the entity LedgerX LLC did not file for bankruptcy. LedgerX has also stopped using the name “FTX US Derivatives,” which it started going by after FTX US rebranded the company following its acquisition.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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