FTX bankruptcy team is exploring ways to restart the FTX crypto services on behalf of a proposal by three bidders.
FTX was a top second-ranked popular crypto exchange but went bankrupt in Nov of last year following news by the Coindesk media over the company’s forged financial records. Allegedly FTX co-founder & former CEO Sam Bankman-Fried (SBF) misused customers’ funds for personal benefits, gifting, political donations, etc. Currently, SBF is in jail under several fraud charges.
On 24 Oct 2023, Bloomberg reported FTX bankruptcy team considering accepting the FTX restart proposal by three bidders.
In a court hearing in Delaware, the company’s investment banker, Kevin M. Cofsky of Perella Weinberg Partners, said that the decision to restart the FTX exchange will come in mid of Dec of this year.
Cofsky said that they will negotiate with the bidders to follow the best approach to restart the exchange which may include selling the entire exchange, including a valuable list of more than 9 million customers.
He also confirmed that there are some possibilities where FTX may restart its services without taking help from a third party, as a big part of the funds has been recovered.
So far FTX bankruptcy team recovered $7 billion worth of funds, including $3.4 billion worth of crypto assets, under the leadership of current FTX CEO John Ray III.
Currently, Gary Wang, little known FTX co-founder, and Caroline Ellison, former CEO of FTX’s sister firm Alameda Research, are cooperating in the FTX case against Sam Bankman-Fried (SBF) to solve the case & find the main culprit behind the FTX downfall.
So far evidence & facts confirmed that it was SBF who misused its power to provide misleading financial information related to the FTX exchange and misused the FTX customer’s funds badly to save Alameda Research.