From Fake News Launch to Firing the CEO, The LedgerX Drama is Bizarre and Baffling
- LedgerX falsely announced and then retracted that their bitcoin futures derivatives had launched.
- The CEO of LedgerX is no longer a part of the company after a tirade on Twitter.
LedgerX is having an eventful week. Just the other day, the platform announced on Twitter that their Bitcoin futures derivatives had launched, only to be shut down with statements from the CFTC that their product had not been approved. LedgerX deleted the tweet, following up with advertising the products as an upcoming product for consumers. However, the tweet wasn’t deleted quickly enough, as many publications jumped on the chance to report on the launch, followed by just as much publicity of the false announcement.
Unfortunately, the CEO of LedgerX – Paul Chou – took this news very badly. In fact, he went on a colorful rant on Twitter, blasting the CFTC for “breaking the law.” He ended up pulling some of the remarks off of Twitter, saying that he has the right to free speech, despite the fact that the agency asked him to censor what he said. It didn’t take long for the public relations representative of LedgerX to announce that Chou was no longer a member of the company, as reported by Bloomberg.
A spokesman from the CFTC, Michael Short, said,
“LedgerX requested that the CFTC amend their order of registration as a DCO to also include clearing futures listed on its DCM. That process has not yet been completed.”
However, Short made no comments regarding the tweets that Chou posted, and Chou hasn’t responded to Bloomberg’s requests for comment.
Presently, LedgerX presently offers institutional cryptocurrency traders the opportunity to use their platform as a swap execution facility, as long as they have a minimum of $10 million in assets. Last month, the firm announced that Singapore and United States consumers were able to sign up on the platform. Consumer traders from the waiting list are already being phased in if the statements that Chou provided before his departure are to be believed.