Bankrupt FTX Weighing Relaunch Proposals From Three Bidders
- Defunct FTX is considering proposals for a possible restart of the platform.
- Kevin Cofsky, FTX’s investment banker, said the company will decide by mid-December.
- Options on the table include a takeover, partnership, or FTX restarting independently.
Bankrupt crypto exchange FTX is looking to restart trading on its platform a year after suffering an abrupt collapse following fraud allegations, Bloomberg reported. The company said it has received multiple offers and will make a decision by mid-December.
Kevin Cofsky of Perella Weinberg Partners, the investment banker representing FTX, said in a recent court hearing that they are “engaging with multiple parties every day” on the possible restart. Cofsky continued that, so far, there are three options on the table for FTX to consider.
According to the investment banker, a possible route is to sell the entire crypto exchange, which has more than 9 million customers. Alternatively, the company could form a partnership to restart the crypto exchange. Should the earlier options not work out, the company could handle the restart independently.
The company’s fate weighs significantly in the crypto ecosystem, especially as customers of the crypto exchange seek to retrieve their assets. So far, the FTX administrators have recovered over $7 billion in assets and gotten approval to sell over $3.4 billion in crypto assets.
As earlier reported, the creditor groups have reached a tentative agreement on how the claims will be settled. That includes a detailed payout for FTX.US and FTX.com customers and other general claims.
Meanwhile, FTX founder Sam Bankman-Fried is currently facing trial in New York. The founder faces allegations of fraud, money laundering, and misuse of customer funds at FTX’s sister company, Alameda Research.
Former FTX top executives, including co-founder Gary Wang and Alameda CEO Caroline Ellison, have given evidence against Sam Bankman-Fried. Both Wang and Ellison have pleaded guilty to the allegations and served as key witnesses for prosecutors. Bankman-Fried continues to maintain his innocence.
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