Cryptocurrency exchange FTX has announced its plans to sell its LedgerX futures and options exchange and clearinghouse for approximately $50 million to private equity investment office M7 Holdings. However, the sale is subject to court approval.

FTX acquired LedgerX in February 2021, but the exchange has faced a series of regulatory issues. In November 2019, LedgerX’s co-founder and former CEO was forced to step down due to allegations of misconduct. In December 2019, the US Commodity Futures Trading Commission (CFTC) accused the company of operating an unregistered derivatives exchange and violating the Commodity Exchange Act.

Following the allegations, LedgerX was ordered to pay a $5 million civil penalty, and the company’s applications for registration as a derivatives clearing organization and a swap execution facility were denied.

FTX’s sale of LedgerX comes as the cryptocurrency industry faces increased regulatory scrutiny. Regulators worldwide are looking to tighten oversight of digital assets, and many exchanges have faced enforcement actions and regulatory fines.

Binance.US Cancels Deal to Purchase Voyager Digital’s Assets

In other news, Binance.US has canceled its agreement to purchase Voyager Digital’s assets for $1 billion. Binance.US cited a “hostile and uncertain regulatory climate in the United States” as the reason for backing out of the deal.

Voyager Digital is a crypto trading platform that allows users to buy and sell digital assets. The company has been expanding rapidly in recent months, acquiring several companies to expand its reach.

The deal with Binance.US would have given the company access to Binance’s technology and liquidity, but it appears that regulatory concerns have caused the deal to fall through.

Binance.US has faced regulatory scrutiny in recent months, with several US states taking action against the company. The New Jersey Bureau of Securities ordered Binance to stop operating in the state in February, citing concerns about the company’s lack of registration with the state.

The cancellation of the deal with Voyager Digital is a blow to Binance.US’s expansion plans. The company has been looking to grow its business in the US, but regulatory challenges could make that difficult.

Conclusion

The cryptocurrency industry is facing increased regulatory scrutiny, with regulators around the world looking to tighten oversight of digital assets. This has led to enforcement actions, fines, and increased uncertainty for companies operating in the space.

FTX’s sale of LedgerX and Binance.US’s cancellation of the deal with Voyager Digital are just the latest examples of the challenges facing the industry. As the regulatory landscape continues to evolve, companies will need to adapt and find ways to operate within the confines of the law.