The LedgerX cryptocurrency derivatives exchange will earmark $175 million for use in the bankruptcy proceedings of FTX Group’s parent structure, Bloomberg reports citing sources.
LedgerX LLC did not make the list of 130 company-affiliated legal entities that filed for bankruptcy. According to the agency, the funds will come from a $250 million fund — it was intended to finance regulator-approved procedures for crypto-derivatives trades without intermediaries.
According to media reports, the funds will be transferred on November 30 and used to repay debt to FTX’s creditors. A representative of the CFTC told Bloomberg that the agency is aware of the planned operation.
On November 15, FTX reported having more than one million creditors. According to court filings, the crypto exchange and related entities to the 50 largest creditors totaling $3.1 billion.
In 2019, LedgerX received an authorized derivatives market license from the CFTC. At the same time, the platform announced the launch of deliverable Bitcoin futures. The regulator later stated that it had not granted permission for this.
In August 2021, FTX’s U.S. subsidiary announced plans to open clients’ access to trading crypto derivatives. Later the group acquired LedgerX.
Crypto funds losses due to the FTX bankruptcy could amount to up to $5 billion, according to Crypto Fund Research. The crisis affected 25-40% of sector investment vehicles that had invested in the Bitcoin exchange or its utility token FTT.
Earlier in Bloomberg, called a recovery of client funds unlikely.
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