Although it
seemed that the crypto exchange FTX would not recover after its high-profile
collapse in November 2022, its operator is now considering proposals from three
bidders to restart its operations. The company had filed for bankruptcy amid
allegations of fraud and is expected to decide on its future by mid-December.
During a
recent court hearing, Kevin M. Cofsky, the company’s investment banker from
Perella Weinberg Partners, revealed that FTX Trading Ltd. is negotiating
potentially binding offers. The options being considered include selling the
entire exchange , which boasts a valuable customer list of over 9 million, or
partnering with another firm to relaunch the platform. Alternatively, FTX is
contemplating rebooting the trading platform independently.
Since its
bankruptcy filing last year, FTX has been actively working to raise funds to
repay its creditors. According to court documents, the administrators have
recovered approximately $7 billion in assets, including $3.4 billion in
cryptocurrency.
Andrew
Dietderich, the company’s attorney, stated that FTX and its main creditor
groups have tentatively settled some of the most challenging disputes. This
settlement will enable the company to file a detailed payout plan in December.
However, the exact recovery percentage for creditors and customers remains
uncertain. What is more, it will partly depend on the value generated from a
potential sale…
