LedgerX LLC, one of the few solvent pieces of FTX Group cofounder Sam Bankman-Fried’s crumbled conglomerate, is for sale and attracting interest from would-be buyers including cryptocurrency giants Blockchain Ltd and Gemini Trust Co, people familiar with the matter said.
The unit, which is registered with the US Commodity Futures Trading Commission (CFTC) as a derivatives exchange, was a cornerstone of Bankman-Fried’s efforts in Washington. It is also considered one of the most valuable assets associated with FTX after more than 100 other entities filed for bankruptcy.
New FTX CEO John Ray and restructuring advisers have been poring over the company’s books in search of cash, cryptocurrency and assets that could be sold to help repay creditors.
It is unclear how much LedgerX, which had about US$303 million in cash as of a Nov. 17 filing, might fetch in a sale.
In addition to Blockchain and Gemini, cryptocurrency exchange Bitpanda GmbH and event contracts trading platform Kalshi Inc, which is also registered with the CFTC and uses LedgerX to clear trades, have expressed interest, the people said.
There are about half a dozen other potential buyers and more could be added, one of the people said.
Representatives for LedgerX, FTX, Blockchain, Gemini and Kalshi did not respond to requests for comment.
Bitpanda chief executive officer Eric Demuth said the firm was not interested or considering the purchase.
In a sign that talks are becoming more serious, at least some of the parties have signed nondisclosure agreements, some of the people said.
After FTX US purchased it last year, LedgerX sought approval for a controversial plan to clear crypto derivatives trades without intermediaries.
The firm withdrew its application with the CFTC as the corporate group of companies filed for bankruptcy.
As early as Wednesday, LedgerX planned to make US$175 million available for use in FTX’s bankruptcy proceedings from a US$250 million fund the company set aside as part of that application.
CFTC Chairman Rostin Behnam previously told US lawmakers that his agency is in daily communication with LedgerX amid the FTX turmoil.
However, the potential sale was not discussed, Behnam said.
Taiwan Semiconductor Manufacturing’s (TSMC, 台積電) first wafer fab in Kumamoto, Japan is still set to launch commercial production in the fourth quarter of this year as planned, the world’s largest contract chipmaker said on Saturday in response to reports that mass production might begin ahead of schedule. TSMC said the monthly production capacity of the joint venture fab, Japan Advanced Semiconductor Manufacturing (JASM), is expected to hit 55,000 units of 12-inch wafers, using the mature 12-nanometer, 16-nanometer, 22-nanometer and 28-nanometer processes. JASM is owned by TSMC and its Japanese business partners Sony Semiconductor Solutions Corp and Denso Corp, with the Taiwanese company
US President Joe Biden’s administration is in talks to confer more than US$10 billion in subsidies to Intel Corp, people familiar with the matter said, in what would be the largest award yet under a plan to bring semiconductor manufacturing back to US soil. Intel’s award package is expected to include both loans and direct grants, the source said. They stressed that negotiations are still under way. The US Department of Commerce and Intel declined to comment. The incentives would come from the 2022 Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, which set aside US$39 billion in direct grants as
German automaker Volkswagen (VW) on Wednesday said that it was discussing the future of its activities in China’s troubled Xinjiang region, following fresh allegations of human rights abuses. The Handelsblatt daily reported that forced labor might have been used to build a test track in Turpan, Xinjiang, in 2019. VW said it had seen no evidence of human rights violations in connection with the project, but vowed to investigate any new information that came to light. In an apparent sign of the growing pressure on the group over its presence in the region, VW added that it was in talks with its Chinese
A new artificial intelligence (AI) tool that promises to create short videos from simple text commands has raised concerns along with questions from artists and media professionals. OpenAI, the creator of ChatGPT and image generator DALL-E, on Thursday said it was testing a text-to-video model called “Sora” that can allow users to create realistic videos with simple prompts. The San Francisco-based start-up said that Sora can “generate complex scenes with multiple characters, specific types of motion, and accurate details of the subject and background,” but added that it still has limitations, such as possibly “mixing up left and right.” Examples of Sora-created clips