MIAX completes acquisition of FTX subsidiary LedgerX

The Miami International Securities Exchange (MIAX), owned by Miami International Holdings, has completed its acquisition of LedgerX, one of the FTX assets approved for sale by the court in January. LedgerX is an exchange and clearing house regulated by the United States Commodity Futures Trading Commission (CFTC).

The acquisition of LedgerX was “an important part of our growth strategy, expanding our ability to offer new and innovative products to the swaps and futures industry,” Miami International Holdings (MIH) CEO Thomas Gallagher said in a statement. . MIAX is one of a series of financial companies owned by MIH.

Leslie Lamb, the CEO of OPNX, the cryptocurrency exchange founded by Three Arrows Capital (3AC) founders Kyle Davies and Su Zhu and Coinflex, claimed that MIAX was also an investor in that company in an April 21 tweet.

The parties entered into a purchase agreement for the acquisition of LedgerX by MIAX in April, pending court approval. At the time, FTX said the proceeds from the sale would be about $50 million. Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware approved the deal on May 4.

Related: CFTC Chairman Rostin Behnam Names LedgerX Success Story Amid FTX Collapse

LedgerX was approved for sale by the Delaware court in January, along with equity trading platform Embed, FTX Japan and FTX Europe. About 117 potential buyers expressed interest in the asset, with 56 looking at LedgerX in particular. A spokesperson for OKC USA, another bidder for LedgerX, said the company may be seeking “appropriate relief” for “not true” statements in a statement filed regarding the sale, but it has not objected to the sale.

MIAX completes acquisition of LedgerX from FTX debtors:

— Zach Dexter (@zachdex) May 19, 2023

FTX filed a lawsuit on May 17 against former CEO Sam Bankman-Fried, co-founder Gary Wang, and former chief technology officer Nishad Singh for failing to conduct due diligence on the Embed acquisition. FTX paid $220 million for the company when the deal closed in September. The highest bid received for it after FTX’s bankruptcy was $1 million. FTX filed a lawsuit the same day to recover more than $240 million from Embed CEO Michael Giles and others.

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