(Bloomberg) -- LedgerX -- one of the few corners of Sam Bankman-Fried’s crumbled crypto empire that remain solvent -- is preparing to make available $175 million for use in FTX’s bankruptcy proceedings, according to people with knowledge of the matter.
The money, which could be transferred as soon as Wednesday, comes from a $250 million fund that LedgerX had set aside for a bid to get regulatory approval to clear crypto derivatives trades without intermediaries. The firm, which is known as FTX US Derivatives, withdrew its application with the US Commodity Futures Trading Commission as more than 100 FTX entities filed for bankruptcy on Nov. 11.
A spokesman for the CFTC, which regulates LedgerX, said that the agency is aware of a planned transfer. Representatives for LedgerX and FTX didn’t immediately respond to requests for comment.
The transfer to FTX’s bankruptcy estate would provide a fresh pool of money that could be made available to investors scrambling to recoup losses. Since bankruptcy was declared, new Chief Executive Officer John J. Ray III and advisers have been poring over the company’s books in search of cash, cryptocurrency and assets that could be sold to help repay creditors.
The chairman of the CFTC, Rostin Behnam, is slated to testify about the FTX collapse in a US Senate committee hearing on Thursday.
--With assistance from Hannah Miller and Jeremy Hill.
©2022 Bloomberg L.P.
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