Today, the US Bankruptcy Court authorize the sale of the derivatives trading platform LedgerX – which was previously owned by FTX and purchased for nearly $300 million – to a private equity firm, M7 Holdings. The approved sale comes at a much lower price of $50 million, with the express purpose of reimbursing clients who had their funds lost in the FTX crash of November 2021.

FTX - formerly headed by alleged criminal Sam Bankman-Fried – was seen by many as a success story as it rose to become one of the only companies in the market to cater to American customers with the selling, buying and betting of digital assets. Much of its success was attributed to its innovative advertising strategies, which saw its former CEO's face plastered across San Francisco, as well as its ability to appeal to the Republicans and Democrats with big donations.

Unfortunately, the company joined the list of cryptocurrency failures after it suffered from insolvency and a major crash in November of last year, which saw its assets turn to dust. There was a lot of uncertainty surrounding the future of its entities, yet at least one of them met with successful repossession – LedgerX.

As the authorized repossessor of LedgerX LLC, M7 Holdings will now be able to use the company as its own, under the watchful eye of the US Commodity Futures Trading Commission (CFTC). Those who invested in LedgerX's success prior to the FTX crash can now receive their due repayments – albeit smaller than their original investment – in a legal and fair manner.

The sale may act as a lesson to those who see cryptocurrency as a quick method of gaining financial riches. While the digital asset industry is full of hope and promise, it is still a largely unregulated space that can easily fold when faced with greedy management decisions and criminal abuse. FTX's collapse is just one case of a company that failed to recognize the risks associated with blockchain technology while betting heavily to increase their profits.



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