A bankruptcy judge has approved the sale of LedgerX, a cryptocurrency derivatives exchange, to FTX. The sale was approved on Monday, September 27, 2021, by Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York.
LedgerX filed for bankruptcy in November 2020, citing financial difficulties. The company had been struggling to compete with larger cryptocurrency exchanges and had been unable to secure additional funding.
FTX, a cryptocurrency derivatives exchange, submitted a bid to purchase LedgerX in August 2021. The bid was for $5 million in cash and $5 million in FTX tokens.
FTX’s Plans for LedgerX
FTX plans to use LedgerX’s technology to expand its offerings in the cryptocurrency derivatives market. The acquisition will allow FTX to offer options and futures contracts on Bitcoin and other cryptocurrencies.
FTX CEO Sam Bankman-Fried said in a statement, “We’re excited to welcome LedgerX to the FTX family. We believe that their technology and expertise will be a valuable addition to our platform, and we look forward to working with their team to bring new products and features to our users.”
Impact on the Cryptocurrency Market
The sale of LedgerX to FTX is expected to have a positive impact on the cryptocurrency market. The acquisition will allow FTX to expand its offerings and compete more effectively with other cryptocurrency exchanges.
The sale also demonstrates the growing interest in cryptocurrency derivatives. As more investors look to hedge their cryptocurrency holdings, the demand for derivatives products is expected to increase.
The sale of LedgerX to FTX has been approved by a bankruptcy judge, allowing FTX to expand its offerings in the cryptocurrency derivatives market. The acquisition is expected to have a positive impact on the cryptocurrency market and demonstrates the growing interest in cryptocurrency derivatives.