LedgerX Founders Put On Leave: No Real Reasons Have Been Given

LedgerX founders Paul and Juthica Chou have been put on administrative leave as the board of directors at Ledger Holdings announced the decision. In today’s blockchain news, we find out more about their decision.

In a press release, the Bitcoin derivatives exchange LedgerX explained that two executives will be replaced by the new interim chief executive officer Larry E. Thompson and the lead director of Ledger Holdings. Thompson will take with him the experience of a 30-year career at Wall Street.

However, it remains unclear why the LedgerX founders were put on administrative leave. Chou took to Twitter where she explained that there are no real reasons given for the decision except that they  ‘’had long-lasting disagreements with the board about the vision and direction of the business.’’

At the start of August this year, the United States Commodity Futures trading commission (CFTC) explained that LedgerX’s physically-settled bitcoin futures products are not approved by the regulator. LedgerX commented on July 31^st that the physical futures offering were live on the Omni trading platform. However, the CFTC suggested that this was unable to happen.

The derivative specialist Thomas G. Thompson, pointed out that ‘’the CFTC does not show any futures contracts certified by’’ the company. In the meantime, Paul Chou wrote to Twitter once again to take aim at the CFTC in a few explanative tweets. Later in September, the controversy involving the CFTC was sparked when LedgerX claimed that the former chairman of the agency Christopher Giancarlo, cause a blockage of the approval for the amended Derivatives Clearing Organization registration because of the many personal issues he had with the CEO of Ledger, Paul Chou.

As previously reported, the regulated crypto trading platform that LedgerX has released a derivative contract that is a pure resemblance to bitcoin according to the official blog post. The new halving contract LXHC is actually a binary option where every payoff is either a fixed monetary amount or basically zero which settles up to the next time when Bitcoin halves. This new product will allow the users to get a fixed payoff if in any case, the next halving happens before a pre-set date and time. If the block is discovered after the halving process, the contract will come down to zero.