LedgerX drops Silvergate in favour of Signature Bank

LedgerX, a crypto-derivatives platform within the FTX Group, notified clients that fiat transfers must be made via Signature Bank. Cooperation with Silvergate will be terminated, Bloomberg reports.

The latter institution is already a partner of the platform.

Representatives of Signature said to the agency that they continue to serve the interests of crypto companies after the bank announced in December plans to scale back the scope of this business.

As of November 17, 2022, the platform’s accounts held $303 million. The FTX subsidiary ended up in the list of business units that are subject to sale to raise liquidity for creditor settlements as part of the restructuring of the Bitcoin exchange.

The bidding process for participation in the auction will close on March 7. The bidders have not been disclosed.

Earlier, representatives of the exchange said that LedgerX, Embed, FTX Japan, FTX Europe and other companies in the FTX Group attracted the interest of 117 organisations. The crypto-derivatives platform is set to be acquired by 56 companies. Among them Blockchain.com, Gemini and Bitpanda.

In 2021, FTX US announced plans to open access for clients to trade crypto derivatives. The group later acquired LedgerX.

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

The platform allocated $175 million for use in the bankruptcy proceedings of the FTX Group’s parent company, according to Bloomberg.

Earlier, banks Signature and Silvergate filed suit, accusing them of aiding the former CEO Sam Bankman-Fried’s illegal activities.

In February 2023, ФРС, FDIC and OCC issued a joint statement, reminding US banks of the potential risks arising from crypto-focused service providers.