LedgerX Places Founders On Leave Following Public CFTC Woes https://t.co/YBZL6uZz9U LedgerX have placed co-founders Paul and Juthica Chou on administrative leave, effective immediately https://t.co/dUtxFPgeyq News pic.twitter.com/LIz7TyOazU — CryptoPost (@crypto_PST) December 10, 2019
On December 9, it has been reported that LedgerX explained that the two executives will be replaced by Larry E. Thompson as Interim Chief Executive Officer and Lead Director of Ledger Holdings. Thompson brings with him the experience of a 30-year career on Wall Street.
However, it remains unclear why the Board of Directors has decided to place both executives on administrative leave.
Juthica Chou took to Twitter where she said that no real reasons have been given, except that they “had long-lasting disagreements with the board about the vision and direction of the business.”
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
It has been analyzed that at the beginning of August, the United States Commodity Futures Trading Commission (CFTC) reportedly stated that LedgerX’s physically-settled Bitcoin Futures product was not yet approved by the Commission.
Juthica Chou and Paul Chou, Co-Founders of LedgerX | Image Source: Coindesk
On July 31, 2019, LedgerX said that its physical futures offering went live on its Omni trading platform.
However, the CFTC suggested that this could not have occurred. Thomas G. Thompson, the Derivative Specialist, pointed out at the time that the CFTC does not show any futures contracts certified by the firm. On the same day, Paul Chou took to Twitter to take aim at the CFTC in several expletive-laden tweets.
also i have recordings for this type of thing, and i am going to release all of them on twitter until the government does their fucking job — Paul Chou (@paul_l_chou) August 1, 2019
Thus, in September 2019, a controversy involving the CFTC was sparked by LedgerX’s claim that Christopher Giancarlo, the Agency’s Former Chairman, obstructed the approval of its amended Derivatives Clearing Organization registration because of personal bias against Paul Chou, the CEO of LedgerX.