LedgerX, a subsidiary of FTX Group, will allocate $175 million to be used in the parent company’s bankruptcy proceedings.
The company, which rocked the crypto industry with a sensational impact at the beginning of the month, is struggling with restructuring and post-bankruptcy processes. FTX Group began to seek solutions to its creditors and grievances. As a result of filing Chapter 11 bankruptcy, the company’s assets and liabilities are audited. In the midst of these processes, the step taken by LedgerX, which is part of the FTX Group, drew attention. The subsidiary will provide $175 million in funding to facilitate bankruptcy proceedings.
LedgerX, Within the FTX Group, Will Support the Bankruptcy Process
LedgerX, a subsidiary of the FTX Group, has been approved to use the $250 million it has set aside for CFTC regulations. The sub-company will allocate $175 million of this money to the bankruptcy process.
A spokesperson for the CFTC stated that the amount that LedgerX will allocate can be used for creditors. FTX has approximately 1 million creditors and billions of dollars in debt.
According to the reports, this amount to be allocated can be used immediately. Due to the bankruptcy of FTX, LedgerX withdrew its application for CFTC regulation. It is aimed to use the wasted money to facilitate the bankruptcy process.
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