Miami International Holdings (MIH), an affiliate of the US-based exchange conglomerate, has acquired LedgerX, a crypto derivatives exchange, from FTX and its debtors for approximately USD 50 million. The acquisition will enable MIH to enter the crypto trading space. The debtors of the bankrupt cryptocurrency exchange will receive the proceeds from MIH, which won the bankruptcy auction for the purchase.
LedgerX is a platform that specializes in trading cryptocurrency derivatives and holds three licenses issued by the Commodity Futures Trading Commission (CFTC), which permit it to list futures contracts for commodities, provide clearing services, and facilitate futures trades. In 2021, FTX US, an American subsidiary of FTX, acquired the parent company of LedgerX, Ledger Holdings, for an estimated USD 298 million, and the platform was subsequently rebranded as FTX.US Derivatives.
LedgerX’s parent company also owned a cryptocurrency hedge fund called LedgerPrime, which returned external capital in September of last year. Despite being owned by FTX, LedgerX operated independently with limited exposure to its parent company. According to Coindesk, the platform generated trading and clearing revenue of USD 1.2 million in 2022 but posted a negative EBITDA of USD 17 million.
FTX management sought court approval to sell LedgerX and three other subsidiaries, its European and Japanese entities, and the equities trading platform Embed Technologies. The US court granted permission to sell all four entities in January. While LedgerX got a buyer, the other three FTX subsidiaries are still available for purchase. However, FTX debtors did not publicly announce any bidding auction for them.
Meanwhile, the Japanese and European subsidiaries of FTX resumed withdrawals for their customers. FTX Japan revealed that USD 50 million was withdrawn from the platform within hours of the withdrawals being resumed. However, FTX Europe did not post any progress figures.