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This is a bit misleading: FTX US Derivatives LLC, formerly known as LedgerX, is indeed a wholly owned subsidiary of FTX US (acquired Oct 2021). However, at an o
by jkhdigital 4y ago
This is a bit misleading: FTX US Derivatives LLC, formerly known as LedgerX, is indeed a wholly owned subsidiary of FTX US (acquired Oct 2021). However, at an operational level, it is an entirely separate entity and will probably continue to operate as such (likely reverting to DBA LedgerX). The CFTC licensure was established well before the acquisition.
It's debatable whether you can pin some kind of blame on the CFTC for failing to regulate the entirety of FTX's international operations when they were 100% decoupled from the operations of the one entity that was actually licensed. This article, while surely well-intentioned, is still mostly just grandstanding by a political lobbyist.
- manholio 4y agoI don't think that's entire believable anymore. This direct account from a Alameda employee linked in the other frontpage discussion alleges the Hong Kong office was busy at work trying to sell Alameda assets to cover ftx.us withdrawals (in addition to ftx.com). Why would ftx us need this support if they were fully segregated? https://twitter.com/libevm/status/1592383746551910400 https://twitter.com/libevm/status/1592383746551910400
- pstrateman 4y agoftx.us and FTX US Derivatives LLC (aka LedgerX) are different things.
- blitzar 4y agoIts as if the reality contradicts the intention of the clickbait headline. The regulated company, couldnt share its funds with parent co, couldnt gamble them and is not going bankrupt.
- parmenidean 4y agoIt's also not hard to find this information — the Chairman of the CFTC said this exact thing yesterday: https://www.coindesk.com/policy/2022/11/14/health-of-ftxs-us-derivatives-arm-owed-to-oversight-says-cftc-chief-behnam/ https://www.coindesk.com/policy/2022/11/14/health-of-ftxs-us...
- adastra22 4y agoFTX.us and Alameda have absolutely nothing whatsoever to do with LedgerX, except a (very recent) shared ownership structure.