FTX Delays LedgerX Auction for the Third Time

FTX has set a new date for the sale of LedgerX, the cryptocurrency derivatives exchange — April 4. The Block reports.

The company’s attorney filed the corresponding notice with the U.S. bankruptcy court in Delaware. According to the documents, the auction will take place at the Sullivan & Cromwell office. Hearings on the sale will begin on April 12.

Originally, the auction was scheduled for March 7, and was later moved to March 22.

In the summer of 2021, the U.S. subsidiary of FTX announced plans to give clients access to trading cryptocurrency derivatives. Subsequently the group acquired LedgerX.

In November 2022, FTX Trading, Alameda Research and more than 130 affiliated companies filed for bankruptcy. LedgerX LLC did not make the list.

In December, Bloomberg reported that the cryptocurrency derivatives exchange was put up for sale. According to the agency, about 10 companies showed interest in purchasing it. Among them were Blockchain.com, Gemini and Bitpanda.

In January 2023 the court allowed FTX to begin selling its business units to raise liquidity for creditor settlements. Earlier the platform announced that LedgerX, Embed, FTX Japan, FTX Europe and other entities in the group attracted interest from 117 organisations.

Back in March 2023, Alameda Research Ventures — FTX’s investment arm — signed a deal to sell for $45 million a stake in venture firm Sequoia Capital to Abu Dhabi’s sovereign wealth fund.

Earlier, the exchange’s acting head John Ray said that the platform faced a “significant capital shortfall”.