Owen Gunden's Allegations Expose Deep Governance Crisis at LedgerX

The bitcoin derivatives trading platform LedgerX is facing internal turmoil following the removal of its founding team, with a prominent board member and investor now raising serious questions about the company’s operational integrity and regulatory compliance. Owen Gunden, a longtime director at the company, has emerged as a key voice challenging recent board decisions, bringing scrutiny to what insiders describe as a period of significant organizational dysfunction.

In a detailed letter addressed to multiple stakeholders—including the LedgerX Holdings board, shareholders, and the Office of the Inspector General at the Commodity Futures Trading Commission (CFTC)—Gunden outlined a series of concerns that paint a troubling picture of the company’s direction following the suspension of founders Paul Chou and Juthica Chou from their executive roles in late 2019.

The Founders’ Suspension and Staff Backlash

Owen Gunden’s principal concern centers on how the founders’ removal was executed and its aftermath. He alleged that the board presented an “extreme and one-sided case” against Paul and Juthica Chou during the suspension meeting, with no opportunity afforded for the founders to mount a defense. Notably, Gunden questioned whether such drastic action was warranted, particularly regarding Juthica Chou’s removal as chief financial and risk officer.

“While a case can be made against Paul due to his recent external communications, no comparable case can be made against Juthica, and yet she is being removed as well in spite of being the best suited candidate for CEO,” Gunden wrote in his correspondence.

The impact on company morale proved immediate and severe. Gunden noted that just days after the founders’ suspension, approximately 75% of LedgerX employees signed a petition supporting the leadership duo’s retention. Two employees involved in circulating the petition were subsequently fired, which Gunden characterized as apparent retaliation—a development that intensified internal tensions and raised questions about management’s handling of dissent.

Regulatory Compliance and Governance Questions

Beyond internal management issues, Owen Gunden raised concerns about whether LedgerX continues to meet regulatory requirements under CFTC oversight. He alleged that the company may be failing in its fiduciary duties to investors and market participants, a serious accusation for any derivatives trading platform operating under federal supervision.

Gunden pointed to concerning communication breakdowns, noting that shareholders had submitted letters outlining concerns with interim management, yet these concerns were reportedly ignored. Additionally, he highlighted that LedgerX’s chief financial officer Jennifer Liu appeared to be kept uninformed regarding certain Holdings board activities—a governance red flag suggesting information asymmetries within the organization’s leadership structure.

Shareholder Concerns and Potential Consolidation

One of Owen Gunden’s most pointed allegations involves Miami International Holdings (MIAX), an existing shareholder in LedgerX. Gunden suggested that MIAX may be leveraging its position to engineer a potential takeover or at minimum acquire the company’s valuable regulatory licenses. He noted that MIAX was singularly invited to participate in private board meetings—a privilege not extended to other shareholders—and alleged that a Holdings board member might be receiving undisclosed compensation for facilitating an insider funding round led by MIAX.

The investor also flagged financial concerns, including questionable decisions such as an additional monthly expenditure of $60,000 for a security firm, and alleged that the Holdings board had presented “overly pessimistic” financial projections to the board of directors in what appeared to be a coordinated effort to shape narrative around the company’s viability.

Organizational Deterioration and Employee Uncertainty

The cumulative effect of these governance failures has created palpable uncertainty throughout LedgerX’s workforce. Owen Gunden reported conversations with current employees revealing widespread confusion about the company’s future and alleged that many staff members were actively interviewing with competitors in anticipation of a potential company shutdown. Such accelerated attrition—driven by management instability rather than strategic business failure—threatens to erode the institutional knowledge and talent base necessary for LedgerX to navigate its regulatory and competitive challenges.

Gunden’s comprehensive letter to the CFTC and board members frames these issues as systemic failures demanding urgent intervention from regulatory authorities and shareholders alike, underscoring how questions about governance directly impact the broader cryptocurrency derivatives market’s integrity and investor confidence.