In another hit to the Bitcoin community, the LedgerX co-founders have been placed on administrative leave. The leave is effective immediately, and the board of directors has installed Larry E. Thompson as interim Chief Executive Officer. The news broke via press reports and Twitter.
LedgerX is a federally regulated exchange that has created a niche in the market by offering physically settled Bitcoin swaps and options. The company received approval from the U.S. Commodity Futures Trading Commission (CFTC) to be a Designated Contract Market (DCM) in June of this year. The officers currently on leave are co-founders Paul and Juthica Chou.
LedgerX Internal Issues
The news comes on the heels of a host of other Bitcoin and exchange-related problems. The shuttering of the Canadian government-funded mining company Great North Data only adds to the litany of controversies.
However, the LedgerX announcement does not contain enough detail to be certain of the causes of suspension. What’s more, Juthica Chou offered a public defense of the situation, claiming that it was disagreements within the board that led to the current suspension.
there has been no reason given, except that we have had long-lasting disagreements with the board about the vision and direction of the business
— juthica (@juthica) December 9, 2019
The information supplied does not necessarily fit the facts of the case, however. In fact, Paul Chou’s Twitter header contains the phrase ‘We’re the predators.’ The verbiage may likely be true, depending on how the news unfolds.
Strains with Lawmakers
The announcement further highlights the growing strains between the cryptocurrency community and lawmakers. The Securities and Exchange Commission (SEC) has made it clear that it will brook no violations regarding securities definitions.
In spite of the CFTC approval, LedgerX is also under scrutiny, making it clear that there is confusion about how cryptocurrency companies are supposed to conduct their businesses. The evident disapproval of private coins like Facebook’s Libra only highlights this confusion.
Regardless of how the case pans out, the information will likely move many out of the LedgerX ecosystem in favor of greater stability. Should the board reform around its original founders, some of the losses may be mitigated.
Images courtesy of Shutterstock, Twitter.
