The Miami International Securities Exchange (MIAX), a subsidiary of Miami International Holdings, has announced the completion of its acquisition of LedgerX. This development follows the court’s approval of the sale of one of the FTX assets in January. LedgerX is a renowned exchange and clearinghouse regulated by the United States Commodity Futures Trading Commission (CFTC).
The CEO of Miami International Holdings (MIH), Thomas Gallagher, emphasized that the acquisition of LedgerX was a significant aspect of their growth strategy. This move aims to expand their capacity to introduce innovative products into the swaps and futures industry. It’s noteworthy that MIAX is also a part of the financial companies owned by MIH.
Leslie Lamb, who is the CEO of OPNX (a cryptocurrency exchange founded by Three Arrows Capital (3AC) founders Kyle Davies and Su Zhu, and Coinflex), claimed that MIAX was also an investor in her firm in an April 21 tweet.
The purchase agreement for MIAX’s acquisition of LedgerX was penned in April, and once Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware approved the deal on May 4, the transaction could proceed. FTX anticipated that the sale proceeds would reach about $50 million.
Following the Delaware court’s approval of the sale, interest in LedgerX surged, with 117 prospective buyers showing interest in the assets and 56 of them focusing on LedgerX in particular. A spokesman for OKC USA, another bidder for LedgerX, mentioned that the company might pursue “appropriate relief” for “not true” statements filed in relation to the sale but did not object to the sale.
FTX filed a lawsuit against former CEO Sam Bankman-Fried, co-founder Gary Wang, and former engineering director Nishad Singh on May 17, accusing them of failing to perform due diligence when acquiring Embed stock-trading platform. The deal closed in September, with FTX paying $220 million for the company. However, the highest bid received for Embed after the FTX bankruptcy was only $1 million. In response, FTX sought to recover over $240 million from Embed CEO Michael Giles and others on the same day.
In conclusion, the acquisition of LedgerX by MIAX represents a substantial step in expanding its capabilities in the swaps and futures industry. This development will potentially lead to the introduction of innovative products and services in the market, benefiting both the company and its users in the long run.
Source: Cointelegraph
