February 5, 2023

Bloomberg: LedgerX is going to repay part of FTX's debts

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Bloomberg: LedgerX is going to repay part of FTX's debts

Cryptocurrency derivatives exchange LedgerX, one of the solvent projects of Sam Bankman-Fried's crypto empire, plans to allocate $175 million to pay off FTX's debts, according to Bloomberg.

Funds can be allocated as early as Wednesday from the fundin the amount of $ 250 million, which LedgerX was going to use to obtain a license from regulators to conduct transactions with crypto derivatives without intermediaries. FTX.US Derivatives withdrew its filing with the US Commodity Futures Trading Commission (CFTC) after more than 100 companies filed for bankruptcy on Nov. 11.

According to Bloomberg, a CFTC spokesman said,that the Commission is aware of the planned transfer of funds. The transfer of LedgerX's capital to FTX's balance sheet will form a new pool that can be used to recover losses from investors affected by the FTX default.

Note that after the declaration of bankruptcy, a newFTX CEO John J. Ray III and his advisors scrutinized the company's financial statements for cash, cryptocurrencies and assets that could be sold to pay off creditors.

Recently Cryptocurrency Lending PlatformBlockFi is suing former FTX CEO Sam Bankman-Fried. The company plans to sue him for $648 million in Robinhood shares.