FTX’s Next Move: Three Bidders in the Running for Relaunch
Bankrupt crypto exchange FTX’s new management is evaluating proposals from three potential bidders to revive its trading platform, according to a Bloomberg report.
The final decision on how to proceed is expected by mid-December, as stated by Kevin M. Cofsky, an investment banker from Perella Weinberg Partners, during a recent court hearing in Delaware.
FTX is actively engaged in negotiations with these investors to discuss potential binding offers, which could take different forms, the report said.
The options include selling the entire exchange, which boasts over 9 million customers, or collaborating with a partner to restart the exchange.
Furthermore, FTX is also evaluating the possibility of rebooting the trading platform independently without any new partner.
According to Bloomberg, Kevin Cofsky noted that discussions are ongoing with multiple parties, although he did not disclose the identities of these bidders.
“We are engaging with multiple parties every day,” Cofsky was quoted as saying.
FTX searching for funds
The bankruptcy filing last year prompted FTX to seek funds for creditor repayment.
Thus far, administrators have managed to recover approximately $7 billion in assets, including $3.4 billion worth of crypto, according to court documents.
But while assets are being recovered, the bankruptcy estate is also racking up legal fees, spending more than $200 million so far, according to some reports.
As the main creditor groups and FTX have tentatively settled several key disputes, the company is aiming to submit a detailed payout plan in December, which Bloomberg noted typically provide creditors with an estimated recovery percentage.
FTX’s co-founder CEO, Sam Bankman-Fried, stepped down as CEO following the bankruptcy of the exchange in November last year.
He is currently facing charges in New York related to alleged mishandling of FTX customer funds.
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