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FTX’s LedgerX Will Put $175 Million In Bankruptcy Proceedings

FTX's LedgerX Will Put $175 Million In Bankruptcy Proceedings

Bloomberg reported Wednesday that LedgerX, FTX Group’s solvent subsidiary that also had to file for bankruptcy protection as part of the group, will put $175 million available for use in bankruptcy proceedings, citing people familiar with the situation.

According to the report, the funds might be delivered as soon as today and originate from a $250 million fund put aside by LedgerX as it sought regulatory authority to complete crypto derivatives contracts without middlemen.

As FTX Group filed for bankruptcy on November 11, LedgerX, which is known as FTX US Derivatives, withdrew its application with the US Commodity Futures Trading Commission (CFTC).

According to a CFTC representative, the agency is aware of the proposed move. The transferred funds might be used to reimburse FTX’s creditors.

On Thursday, CFTC Chair Rostin Behnam is scheduled to speak about the FTX crash at a US Senate committee hearing.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.