The collapse of cryptocurrency exchange FTX has cost investors billions of dollars and dealt a stunning blow to venture capital firms. Now, creditors' hopes to recover some of those losses rest in part on LedgerX, a lesser-known unit that offered cryptocurrency derivatives.
LedgerX is one of the few FTX subsidiaries that did not file for bankruptcy. John J. Ray III—FTX’s new CEO, who has excoriated the company’s business practices—said it is among the FTX subsidiaries with “solvent balance sheets, responsible management and valuable franchises.” In court filings this week, bankruptcy lawyers estimated that FTX held $1.24 billion in cash. Nearly one–fourth of that—$303 million—is held by LedgerX.