LedgerX co-founders and senior executives, Paul Chou and Juthica Chou, have been placed on administrative leave by the board of directors of the platform’s parent company, Ledger Holdings.
The board has installed Larry Thompson, formerly vice chairman of the Depository Trust & Clearing Corporation (DTCC), as interim CEO and lead director of the firm.
Paul and Juthica Chou founded LedgerX – a federally regulated exchange and clearing house in the US that lists and clears fully collateralised, physically settled bitcoin swaps and options – in 2013, and served as CEO and COO, respectively.
Earlier this year the firm was due to launch physically settled bitcoin futures but was unable to do so after it emerged that the launch had not yet been approved by the US Commodity Futures Trading Commission (CFTC). In a response to a tweet from CoinDesk on August 1 announcing that the futures did not launch, Paul Chou commented that he planned to sue the CFTC “for anti–competitive behaviour, breach of duty, going against the regs, etc”.
Although LedgerX was unable to launch the physically settled bitcoin futures earlier this year, it still has an application outstanding to modify a CFTC registration that would allow it to launch these products.
Thompson takes the reins at the firm after retiring from the DTCC – where he worked for more than 30 years – in December 2018.
He began his career at the Depository Trust Company (DTC) in 1981 as associate general counsel and was appointed senior vice president in the early 1990s. The DTC merged with the National Securities Clearing Corporation (NSCC) in 1999 to form the DTCC, and then in 2005 Thompson was named general counsel of the firm, with responsibility for all the legal and regulatory activities of it and all its subsidiaries, including oversight of the legal, compliance, government relations and regulatory relations departments.