FTX’s LedgerX is set to allocate $175 million for use in the group’s bankruptcy proceedings

LedgerX, FTX Group's solvent is preparing to make available $175 million for use in the bankruptcy proceedings, according to people with knowledge of the matter, Bloomberg reported Wednesday.

The money, which could be transferred as soon as Wednesday, comes from a $250 million fund that LedgerX had set aside for a bid to get regulatory approval to clear crypto derivatives trades without intermediaries. The firm, which is known as FTX US Derivatives, withdrew its application with the US Commodity Futures Trading Commission as more than 100 FTX entities filed for bankruptcy on Nov. 11.

A CFTC spokesperson told Bloomberg that the agency is aware of a planned transfer, the money could be used to repay FTX creditors, FTX group has more than a million creditors, according to a recent court filing.

The chairman of the CFTC, Rostin Behnam, is slated to testify about the FTX collapse in a US Senate committee hearing on Thursday.