FTX is in talks to reopen
Bankrupt cryptocurrency exchange FTX is in talks to restart operations
FTX is considering two options for a deal: selling the entire exchange and its customer base or bringing in a partner to help it restart operations
Cryptocurrency exchange FTX, which went bankrupt last November, is currently in discussions to potentially resume its operations. FTX Trading Ltd., the entity that owns the exchange, is engaged in talks with three investors, with a decision on whether to proceed expected by mid-December. They are contemplating two options for the deal: selling the entire exchange along with its customer base or partnering with an investor to facilitate the relaunch.
Kevin Kofsky, an investment banker overseeing the negotiations at Perella Weinberg Partners, confirmed these ongoing discussions but did not disclose the names of potential investors.
FTX has been striving to secure funds to repay its creditors since filing for bankruptcy. The company has already recovered $7 billion, which includes $3.4 billion in cryptocurrencies. FTX has reached an agreement with significant creditor groups and intends to present a detailed payment plan in December.
The former FTX CEO, Sam Bankman-Fried, is currently under investigation for fraud, accused of misappropriating client funds, as supported by testimonies from other top company managers. Bankman-Fried maintains his innocence, but if found guilty by the court, he could potentially face over 100 years in prison for the combined charges.
In August of this year, FTX revealed a relaunch plan that includes the development of a new international trading platform, primarily for clients outside of the United States.
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