MIAX Acquire FTX Subsidiary LedgerX for After Court Approval

Almost six months after collapsed cryptocurrency exchange FTX requested the bankruptcy court’s consent to sell LedgerX and three other subsidiaries, Miami International Holdings (MIH)-owned MIAX has completed the acquisition of the business. 

According to some sources, the acquisition of the clearinghouse was worth $50 million. The intention for the acquisition was first announced in April 2023 when a purchase agreement was reached but was not approved until Thursday, May 4th.

Leslie Lamb, the Chief Executive Officer (CEO) of Open Exchange (OPNX), the cryptocurrency exchange founded by the CoinFLEX team and 3AC co-founders Su Zhu and Kyle Davies, claimed that MIAX is one of its investors.

Crypto Investors Clamor Around LedgerX

LedgerX is an exchange and clearinghouse which is regulated under the United States Commodity Futures Trading Commission (CFTC). 

Right before the sale was approved by the court in January, several investors including Blockchain.com, Gemini, Bitpanda, and Kalshi had indicated interest to purchase the firm. Speaking about its acquisition, the CEO of MIH Thomas P. Gallagher explained that LedgerX is;

“an important part of our growth strategy, expanding our ability to offer new and innovative products to the swaps and futures industry. We are pleased to complete this acquisition and welcome the LedgerX team to the MIH family as we continue to execute on our strategy of operating regulated financial markets both in the U.S. and internationally.”

FTX Over-Priced its Embed Acquisition

Sadly, the same accolades cannot be bestowed on Embed, another FTX subsidiary that was also approved for sale alongside LedgerX, FTX Europe, and FTX Japan. This regulated White label brokerage services firm was acquired by FTX last year for $250 million before the unfortunate collapse of the renowned crypto exchange.

FTX CEO Plans to Recover Embed Fund

The new administration of bankrupt FTX under the leadership of John Ray III has sued the former CEO Sam Bankman-Fried, the company’s co-founder Gary Wang, and another former top executive Nishad Singh for completing the over-prized purchase with illegal funds gotten from customers’ deposits. Currently, Embed is not worth as much as it was acquired for.

Several efforts are targeted toward recovering the fund from Embed employees, investors including 9Yards, Y Combinator, Bain Capital Ventures and many others.