According to reports, options range from selling the exchange as a whole—including its sizable customer base of over nine million—to possibly partnering with another organisation in order to revitalise the platform. After filing for bankruptcy, FTX is giving serious thought to its future.
The company’s investment banker, Kevin Cofsky of Perella Weinberg Partners, reportedly disclosed during a court hearing in Wilmington, Delaware, that a decision about the company’s course would be made by mid-December, according to a Bloomberg report. Furthermore, discussions about potentially binding offers are actively being conducted with a number of investors.
There are a number of options under consideration, ranging from partnering with another organisation to resurrect the platform to selling the exchange in its entirety, including its vast customer base of over nine million users. Cofsky has considered the possibility that FTX could independently resurrect its trading platform. The prospective bidders’ names, nevertheless, have not been made public.
FTX has been trying to raise money to pay back its creditors since declaring bankruptcy last year. FTX administrators have reportedly been able to retrieve about $7 billion in assets, including a sizeable $3.4 billion in cryptocurrency, according to court documents.
Furthermore, it has been reported that during the court proceedings, Andrew Dietderich, the company’s attorney, revealed that a preliminary resolution has been reached in certain complex disputes with important creditor groups. This development permits FTX to move forward by December with a thorough payout plan. However, the exact proportion of customer recovery is still unknown and will primarily depend on the result of selling or reviving the exchange.
Allegations against former FTX CEO Bankman-Fried include misappropriating customer funds to a different organisation under his supervision, and he is presently facing a criminal trial in New York. These monies were allegedly used to finance large political contributions, high-risk transactions, and the purchase of opulent homes.