FTX navigates post-bankruptcy options, weighs sale or revival
FTX is carefully considering its future after going through bankruptcy proceedings.
According to a Bloomberg report, during a court hearing in Wilmington, Delaware, Kevin Cofsky, the company’s investment banker from Perella Weinberg Partners, revealed that a decision regarding the company’s direction would be made by mid-December. Additionally, active negotiations are underway with various investors regarding potentially binding offers.
Several possibilities are being considered, including selling the entire exchange, which includes its extensive customer base of over nine million, to forming a partnership with another entity to revive the platform. Cofsky has contemplated the prospect of FTX independently revitalizing its trading platform. However, the identities of the potential bidders have not been disclosed.
Following its bankruptcy declaration last year, FTX has sought to raise funds for creditor repayment. As per court records, FTX administrators have successfully reclaimed approximately $7 billion in assets, with a substantial $3.4 billion in cryptocurrency.
Related: Sam Bankman-Fried seeks expert to counter testimony from DOJ witnesses
Additionally, during the court proceedings, the company’s attorney, Andrew Dietderich, reportedly disclosed that certain complex disputes with key creditor groups have reached a preliminary resolution. This development allows FTX to proceed with a comprehensive payout strategy by December. Nevertheless, the precise percentage of customer recovery remains undetermined and will largely hinge on the outcome of either selling the exchange or revitalizing it.
Former FTX CEO Bankman-Fried is currently on criminal trial in New York, where he faces allegations of diverting FTX customer funds to a separate entity under his control. These funds purportedly funded high-risk trades, substantial political contributions and the acquisition of luxury properties.
Magazine: Can you trust crypto exchanges after the collapse of FTX?
