LedgerX, a subsidiary of bankrupt crypto exchange FTX, is preparing to put up $175 million toward its parent company's bankruptcy proceedings, according to a Bloomberg report, which cited people familiar with the matter.
The money could be transferred as early as Wednesday.
The funds will come from a $250 million pot LedgerX was planning to use in a regulatory bid to get approval to settle crypto derivatives without the use of intermediaries.
The contribution from LedgerX would provide a crumb of comfort for FTX's more than one million creditors. FTX's top 50 creditors are collectively owed about $3.1 billion, according to court documents from the bankruptcy filing.
Neither LedgerX nor FTX immediately responded to requests for comment.
Read more: BlockFi Joins the Bankruptcy Parade
CORRECTION (Nov. 30 18:51 UTC): A previous version of this story incorrectly stated that FTX's more than one million creditors were collectively owed $3.1 billion. That $3.1 billion is actually owed to FTX's top 50 creditors.
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