FTX is in talks with three bidders to relaunch the cryptocurrency exchange.

Oct 25
Before the business failed under fraud allegations, FTX Trading Ltd. was evaluating three bids to resume trading on one of the biggest cryptocurrency exchanges in the world.

According to firm investment banker Kevin M. Kofsky of Perella Weinberg Partner, options include selling the entire exchange, including its highly valuable list of more than 9 million clients, or enlisting a partner to help relaunch the exchange. FTX is also considering rebooting the trading platform.
Without revealing the identities of the bidders, Kofsky added, "We work with multiple parties every day.

Since declaring bankruptcy last year, FTX has been making an effort to raise capital to settle its debts with creditors. According to court records, FTX administrators have so far recovered roughly $7 billion in assets, including $3.4 billion in cryptocurrencies.

According to business attorney Andrew Dietderich, "FTX and its major creditor groups have preliminary settled some of the more complex disputes in this case, which will allow the company to submit a detailed payment plan in December."

Such plans often provide creditors with a range of their expected recovery in bankruptcy, expressed as a percentage. However, as of right now, FTX is unsure of what customers will receive in return," Dietderich stated. "The percentage of recovery will depend in part on how much profit FTX can make from a potential sale or reboot of the exchange."

Sam Bankman-Fried, the creator of FTX, resigned as CEO of the company last year after it shut down its trading platform to address financial instability.

In New York, Bankman-Fried is currently on trial for allegedly diverting funds from FTX clients to a business he controlled. Before both businesses went out of business, it was claimed that the money was used to invest in dangerous ventures, make political contributions, and purchase pricey real estate.

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