FTX, once a towering name in the crypto market, is in the throes of negotiations to breathe new life into its trading platform.
The crypto exchange had previously plunged into bankruptcy, shadowed by allegations of fraud. Now, three bidders have come forward with proposals to restart trading on this formerly bustling platform.
FTX May Restart Operations
Kevin M. Cofsky of Perella Weinberg Partners, the investment banker representing FTX, revealed during a recent court hearing in Wilmington, Delaware, that FTX will finalize decisions on the way forward by mid-December.
FTX is meticulously evaluating potentially binding offers from investors to determine the most viable route to resuscitate the crypto exchange.
Among the options on the table, selling the entire crypto exchange is a consideration. FTX boasts a valuable customer list of more than 9 million. Alternatively, a partnership could emerge to restart the crypto exchange, or FTX could take the initiative to do so independently.
Read more: 13 Best No KYC Crypto Exchanges in 2023
Since its bankruptcy filing last year, the quest to raise funds for repaying creditors has been relentless. According to court documents, FTX administrators have recovered approximately $7 billion in assets, with $3.4 billion being in crypto.
Main creditor groups have reached tentative settlements over some pivotal disputes in the case. This progress paves the way for filing a detailed payout plan in December, company attorney Andrew Dietderich disclosed.
FTX’s founder, Sam Bankman-Fried, who resigned as the CEO last year amidst the financial maelstrom, is currently facing trial in New York. The charges allege the diversion of FTX customer funds into Alameda Research for high-risk trading, political contributions, and extravagant property acquisitions before the inevitable collapse of both entities.
These unfolding negotiations are a glimmer of hope amidst a grim backdrop as FTX strives to shake off the shackles of its past, exploring avenues to restart the crypto exchange.
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