Miami International Closes A $50M Takeover Of LedgerX From Bankrupt FTX
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Miami International Holdings (MIH), an exchange conglomerate based in the United States, has closed a $50M acquisition deal of LedgerX. LedgerX was initially owned by the FTX cryptocurrency exchange that filed for bankruptcy in November last year.
Miami International Exchange Acquires LedgerX
LedgerX is among the few solvent subsidiaries of the FTX exchange formerly owned by Sam Bankman-Fried. Last month, FTX and its debtors announced that they had sold LedgerX to M7 Holdings, an affiliate of Miami International Holdings.
The FTX cryptocurrency exchange filed for bankruptcy in November last year. The exchange later sought permission for the sale of LedgerX and three other subsidiaries known as FTX Japan, FTX Europe, and Embed.
In January, FTX gained approval for the sale of LedgerX and other subsidiaries. However, these subsidiaries ran their operations independently, and they had little to no exposure to FTX international. Nevertheless, they have been subject to regulatory backlash. While LedgerX has found a buyer, the other three subsidiaries remain unsold.
Miami International Holdings is a crypto platform that runs multiple marketplaces, including an options exchange, Miami International Securities Exchange (MIAX), MIAX Pearl, and MIAX Emerald. The company is also behind other platforms, such as Dorman Trading, Miami Grain Exchange, and the Bermuda Stock Exchange.
Miami International Holdings Diversifies Into Crypto
The acquisition of LedgerX has enabled Miami International Holdings to diversify its operations into the crypto industry. LedgerX is a platform regulated by the US Commodity Futures and Trading Commission (CFTC). It provides access to crypto options and futures contracts trading. It also runs as a clearinghouse and a swap execution platform.
The Chairman and CEO of Miami International Holdings spoke on the acquisition, saying, “The acquisition of LedgerX represents an important part of our growth strategy, expanding our ability to offer new and innovative products to the swaps and futures industry.”
FTX acquired the parent company of LedgerX, Ledger Holdings, through an American subsidiary known as FTX US in 2021. The deal was said to have cost $298 million. The company was later rebranded to FTX.US Derivatives following the acquisition.
The current Chief Executive at FTX, John J. Ray III, took over the ownership of FTX last year, and he has since been advocating for restructuring. He said that the sale of LedgerX was an illustration of how the company continued with its efforts to monetize assets to boost recoveries for the stakeholders.
In early April, the bankrupt FTX exchange said that it had managed to recover $7.3 billion worth of cash and liquid digital assets. The number of recovered assets since January has increased by $800 million.
