LedgerX CEO, COO on Administrative Leave After Scuffle With CFTC

Paul and Juthica Chou, CEO and COO of LedgerX, are no longer managing the organization they established. 

A public statement on December 9 revealed that the couple had been “placed on administrative leave,” effective immediately, with Larry E. Thompson acting as interim CEO and lead director of Ledger Holdings, the derivatives provider’s parent firm.

“The board composition is tricky,” Juthica Chou said. “There is nobody else on the board that knows computer science, bitcoin and derivatives – which makes these conflicts and disagreements often difficult. Paul and I wish the new management team well.”

LedgerX provides bitcoin derivatives products to retail and institutional investors in the U.S., fundamentally physically-settled options and swaps contracts. The organization failed in an attempt to roll out physically-settled bitcoin futures this year, although its application to change a Commodity Futures Trading Commission (CFTC) registration enabling it to do so stays outstanding.

The firm has been working with the CFTC to get its amendment since last year.

In any case, as indicated by a couple of letters acquired by CoinDesk through a Freedom of Information demand in September, the firm’s leadership trusted previous CFTC Chairman Christopher Giancarlo held a “personal animus” towards LedgerX because of a blog entry composed by Paul Chou.

Paul Chou affirmed that the letters were accurate during that time.

As indicated by Monday’s public statement, Thompson comes from the Depository Trust and Clearing Corporation (DTCC), where he acted as a vice-chairman. DTCC Managing Director Mark Wetjen is part of the LedgerX’s board.

“The board of Ledger Holdings is committed to the Bitcoin ecosystem and all of Ledger Holdings’ stakeholders,” Monday’s official statement said.