Posted 2 years ago | by Ben Armstrong
LedgerX CEO Threatening Legal Action
Last week the crypto world was in mass hysteria over the first physically backed Bitcoin futures contracts via LedgerX platform Omni. The next day, the CFTC stated that there were no approved physically backed Bitcoin futures contracts. This left many people very confused over why LedgerX would say they were approved when they were not. Honestly, I thought this was a cheap marketing ploy by LedgerX to get people to sign up for the wait list to trade the contracts on Omni.
However, today we have some clarification on what exactly happened. LedgerX believed they were approved because the CFTC did not reject them during the 180 day application period. Basically, since they were not told they were rejected, LedgerX believed that they were approved. The CFTC has clarified that a lack of rejection does not equal an affirmative approval. The LedgerX DCO does appear to be in the final stages though.
LedgerX CEO Paul Chou has been very vocal since Friday stating his case many times on Twitter.
also breaking, i've decided to sue the CFTC for anti competitive behavior, breach of duty, going against the regs, etc.
— Paul Chou (@paul_l_chou) August 1, 2019
Mr. Chou has threatened to sue the CFTC as seen in this tweet. I'm not sure if that's a great way to get on the good side of the CFTC when your application is still in the approval process. He may have as minimum tacked on a few days to the approval and at worst may not see the LedgerX application approved at all. It doesn't seem like Mr. Chou is interested in winning friends at the CFTC.
Many people have suggested that CME has a heavy influence on the CFTC. If there is any truth to that, LedgerX may have a more uphill battle than previously thought.
See more about this story in BitBoy Crypto's latest video: