Cryptocurrency derivatives exchange FTX is set to auction its LedgerX platform to bidders on April 4, following revised dates filed by FTX’s counsel on March 18 in the US Bankruptcy Court for the District of Delaware. The auction will take place at the offices of law firm Sullivan & Cromwell, with a sale hearing scheduled for April 12. Notice of the successful bidder will be given within one business day of the auction’s conclusion.
Previously scheduled for March 7 and then revised to March 22, the auction has been pushed back again, with no explanation provided for the most recent date change. FTX obtained approval earlier this year to sell off business units in order to raise funds for creditors, with Embed Financial Technologies, FTX Japan, and FTX Europe also on the market. According to a legal filing at the beginning of this year, around 117 parties have shown an interest in purchasing FTX’s entities.
The sale of LedgerX comes amid a challenging time for the cryptocurrency industry, with regulatory scrutiny intensifying in the US and beyond. However, FTX’s co-founder and CEO, Sam Bankman-Fried, has remained optimistic about the exchange’s prospects, stating that the current uncertainty around regulation may ultimately benefit FTX by weeding out weaker competitors.
FTX has emerged as a major player in the cryptocurrency derivatives market since its launch in 2019 and has seen significant growth in recent months. Its platform offers a range of futures, options, and leveraged tokens for trading and has recently expanded to include stock and cryptocurrency spot trading.
The sale of LedgerX is likely to generate significant interest among potential bidders looking to capitalize on FTX’s success. FTX’s subsidiary in the United States acquired LedgerX, a cryptocurrency derivatives exchange, in October 2021. Following the acquisition, the exchange was rebranded as FTX.US Derivatives.