FTX's LedgerX to free up $175 million for use in bankruptcy proceedings: Bloomberg

Quick Take

  • FTX Group’s solvent unit LedgerX is set to allocate $175 million for use in the group’s bankruptcy proceedings, Bloomberg reported.
    The money could reportedly be used to repay creditors.

LedgerX, FTX Group's solvent subsidiary that also had to file for bankruptcy protection as part of the group, will make available $175 million for use in bankruptcy proceedings, Bloomberg reported Wednesday, citing people with knowledge of the matter.

The money could be transferred as soon as today and comes from a $250 million fund that LedgerX had set aside, as it aimed to get regulatory approval to clear crypto derivatives trades without intermediaries, per the report. LedgerX withdrew its application with the US Commodity Futures Trading Commission (CFTC) as FTX Group filed for bankruptcy on Nov. 11. FTX US had acquired LedgerX last year and rebranded it to FTX US Derivatives.

A CFTC spokesperson told Bloomberg that the agency is aware of a planned transfer. The transferred money could reportedly be used to repay FTX's creditors. The FTX Group has more than a million total creditors, a recent court filing indicated. The group currently has a combined cash balance of $1.24 billion, which is far below the $3.1 billion it owes its top 50 creditors.


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FTX Group collapsed earlier this month amid a sudden liquidity crisis. The crypto exchange operator reportedly tapped customer assets to fund risky bets by its affiliated trading firm, Alameda Research, setting up its implosion.

CFTC chair Rostin Behnam is slated to testify about the FTX collapse in a US Senate committee hearing on Thursday.

Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.


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