One of the only solvent members of Sam Bankman-Fried's fallen crypto empire is contributing $175 million to FTX bankruptcy proceedings, report says
- LedgerX is preparing to make $175 million available to FTX's bankruptcy proceedings, sources told Bloomberg.
- The company is one of the few solvent members of Sam Bankman-Fried's crypto empire.
One of the only solvent companies in Sam Bankman-Fried's fallen crypto empire is preparing to make $175 million available to FTX's bankruptcy proceedings, sources told Bloomberg.
LedgerX, which is a digital currency futures and options exchange, could transfer the money as early as Wednesday, the report said.
FTX acquired LedgerX in September 2021 for an undisclosed amount and then renamed it FTX US Derivatives.
The $175 million to be transferred initially had been set aside as part of a $250 million fund that was meant for a bid to garner regulatory approval to clear derivatives trading.
But FTX US Derivatives withdrew its application with the Commodity Futures Trading Commission as FTX filed for bankruptcy on November 11.
The transfer comes as FTX, under the leadership of new CEO John Ray III, scrambles to uncover funds to recoup losses in response to the collapse of the world's second-largest cryptocurrency exchange.
Earlier reports said FTX was facing a shortfall of billions of dollars between its assets and liabilities and that substantial amounts of money are also unaccounted for due to unauthorized transfers and hacks.
Meanwhile, the Securities Exchange Commission, CFTC and the Justice Department are reportedly investigating FTX for potential misuse of client funds.