LedgerX, a regulated crypto trading platform and a Derivative company of the FTX.US exchange said it is going to give $175 million to the defunct FTX exchange to use for its ongoing bankruptcy proceedings.
According to a Bloomberg report, LedgerX said the money it plans to give FTX exchange was gotten from the $250 million it has set aside in an effort to obtain regulatory approval to clear cryptocurrency futures contracts without middlemen. LedgerX also hinted that the funds will be transferred as soon as possible to FTX.
The $175 million would create a new pool of funds that may be made accessible to FTX investors and stakeholders looking to recuperate losses. The new CEO of FTX exchange, John J. Ray III has been making an effort to see that the company bounces back by going through the company’s records in search of cryptocurrency, cash, and assets that may be liquidated to help repay creditors.
It is worth mentioning that LedgerX has withdrawn its application from the United States Commodity Futures Trading Commission (CFTC), which provides regulation to the U.S. derivatives market following bankruptcy proceedings filed by over 100 FTX institutions.
Support for FTX Exchange
The defunct FTX exchange has received some support from key players and stakeholders in the crypto industry in the face of its ongoing financial crisis.
John J. Ray III, the new CEO of FTX said he is putting structures in place to see that the firm recovers from its losses and pays investors the monies owed to them. John highlighted that there is a potential for selling or reorganizing the failed trading firm.
TRON founder, Justin Sun is one industry player that has guaranteed his company’s support for the crypto industry in the face of market turbulence, providing billions of dollars in assistance to FTX. Sun, on the other hand, claimed that the funding would be released only when he had completed his due diligence.
During the dark times, joint efforts can be especially effective. Poloniex will become a part of this initiative and contribute to the industry recovery🤝 https://t.co/deDxVP8DFm
— Poloniex Exchange (@Poloniex) November 14, 2022
Changpeng Zhao, the CEO of Binance exchange, the biggest trading platform across the globe, stated via a report that Binance is prepared to establish a recovery fund in the crypto ecosystem to support projects with solid assets but experiencing liquidity challenges in an effort to ease the load placed on them as a result of the negative impact the FTX crash.
