THE LedgerX — one of the few corners of the crypto empire of Sam Bankman-Fried that remains solvent — will make $175 million available for use in the company’s bankruptcy proceedings. FTXaccording to people with knowledge of the matter.
The money, which can be transferred as early as Wednesday, comes from a $250 million fund that LedgerX had set aside to start clearing crypto derivatives without intermediaries if it gets regulatory approval.
The company withdrew the application with the Commodity Futures Trading Commission of the USA when more than 100 FTX entities filed for bankruptcy on Nov.
A spokesperson for the CFTC, which regulates LedgerX, said the body is aware of a planned transfer. Representatives for LedgerX and FTX did not immediately respond to requests for comment.
The transfer to the FTX bankruptcy estate would provide a new source of cash that can be made available to investors struggling to recoup their losses.
Since it was declared bankrupt, new CEO John Ray and advisers have been poring over the company’s books looking for cash, cryptocurrencies and assets that can be sold to help pay off creditors.
CFTC Chairman Rostin Behnam is due to testify on the FTX collapse before a US Senate committee on Thursday.
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