FTX plans to sell LedgerX, to M7 Holdings for $50 million.

FTX, a major cryptocurrency exchange, plans to sell its US-based crypto derivatives exchange, LedgerX, to M7 Holdings, a subsidiary of options platform MIAX.The deal is expected to generate $50 million for the bankruptcy estate of Sam Bankman-Fried's former crypto exchange. A hearing to authorize the sale is set to take place on May 4 before Judge John T. Dorsey of the United States Bankruptcy Court for the District of Delaware. MIAX runs derivatives-focused Miami International Securities Exchange and teamed up with crypto data provider Lukka last year to introduce a suite of crypto derivatives. The deal with LedgerX is expected to enhance MIAX's crypto footprint.

FTX's US affiliate acquired LedgerX in October 2021 for an undisclosed sum, which opened up crypto derivatives trading to local users. Earlier this year, FTX secured approval to sell LedgerX and three other affiliated businesses to generate funds to pay back creditors. Bankruptcy lawyers for FTX said the entities had "solvent balance sheets, independent management and valuable franchises". FTX CEO John J. Ray III confirmed that Miami-based LedgerX operated independently from FTX's other operations, which were allegedly riddled with fraud.

"We are pleased to reach this agreement with MIH, which is an example of our continuing efforts to monetize assets to deliver recoveries to stakeholders," Ray said in a statement. The auction for LedgerX, which was previously scheduled for March, took place on April 4. Over 100 parties had shown interest in purchasing one or more of the businesses.

The sale of LedgerX to MIAX is expected to enhance the latter's crypto derivatives trading capabilities. MIAX has been steadily expanding its operations and offering innovative trading solutions to customers. Lukka, a crypto data provider, is a strategic partner of MIAX and the two companies collaborated to launch a suite of crypto derivatives last year. The acquisition of LedgerX is likely to further enhance MIAX's position in the growing crypto derivatives market.

Overall, the sale of LedgerX to MIAX is a positive development for the crypto industry. It is an indication that established players in the financial markets are increasingly taking an interest in crypto derivatives trading. As more players enter the market, it is likely that competition will increase, leading to better trading solutions and greater transparency. With MIAX's expertise and experience in derivatives trading, LedgerX is likely to see significant growth in the coming years.