Coinbase Goes Global with Launch of Derivatives Exchange in Bermuda

Bankrupt crypto exchange FTX has reached an agreement with Miami International Holdings (MIH) for the sale of its crypto derivatives platform LedgerX for $50 million to deliver recoveries to stakeholders.

The sale of the platform was confirmed by FTX Chief Executive Officer John J. Ray III, he wrote via a statement, “We are pleased to reach this agreement in our continuing efforts to monetize assets to deliver recoveries to stakeholders”.

According to the announcement, the deal is waiting for approval from the US Bankruptcy Court scheduled for May 4, 2023. Upon the completion of the deal, FTX customers will receive $50 million from Miami International Holdings (MIH).

In January this year, FTX recovered more than $5 billion in various assets, substantially increasing the amount identified by new executives as the failed crypto exchange seeks to repay creditors. The assets include cash, liquid cryptocurrency, and liquid investment securities,

Investors King understands that since filing for Bankruptcy in November 2022, the crypto exchange has now recovered over $7.3 billion in cash and liquid crypto assets, the company reported earlier this month. It has continued to sell its assets as part of a recovery effort to repay its customers.

FTX disclosed that it is working on a bankruptcy plan that would lay out how it intends to repay its customers. In a court document filed last month, it revealed that the crypto exchange owes $102 million to customers and at least $3.1 billion to roughly 1 million creditors. FTX’s top ten creditors alone have more than $100 million each in unsecured claims, according to the filing, equal to more than $1.45 billion combined.

The crypto former CEO Sam Bankman-Fried faces a trial on October 2, 2023. He faces a number of different charges, including fraud, defrauding the Federal Election Commission, and allegedly bribing a Chinese government official.

It is worth noting that the collapse of FTX has put a spotlight on the unregulated world of cryptocurrencies, an industry that has intentionally operated outside traditional banking and finance rules, as several regulators have called for the regulation of the sector.

Last week, the EU Parliament voted 517 in favor and 38 against passing the Markets in Crypto Act, or MiCA. The rules will impose a number of requirements on crypto platforms, token issuers, and traders around transparency, disclosure, authorization, and supervision of transactions.