FTX Exchange in Revival Negotiations with Three Bidders

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DailyCoin2023/10/30 12:09

By:DailyCoin

FTX could come back to life soon.
Three bidders have shown interest in restarting the exchange.
The exchange has resolved complex disputes with key creditor groups.

Sam Bankman-Fried’s once-pioneering crypto exchange FTX looks at a potential breakthrough in efforts to restart afresh following the November 2022 bankruptcy.

According to a Perella Weinberg Partners investment banker retained by FTX, Kevin Cofsky, the defunct crypto exchange could resurrect its operations after mid-December when the bankruptcy court of the District of Delaware decides its fate.

Three Bidders Show Interest in FTX

A Bloomberg article dated October 24 reported that during a court hearing on Tuesday, Cofsky revealed that FTX Trading Ltd. is negotiating with multiple investors to revive the exchange post-bankruptcy, with at least three bidders rooting for an acquisition deal.

Cofsky also alluded to the possibility of FTX embarking on a revival journey solo to reboot its trading platform, which boasted tens of billions of dollars in daily transactions and over 9 million customers at its peak.

“We’ve narrowed the field from a large number to a smaller number in what we’re calling our second round. I am optimistic that we will have either a plan for a reorganized exchange, a partnership agreement or a stalking horse for a sale, on or prior to the December 16 milestone date,” Cofsky stated.

There is also the possibility of FTX joining hands with another entity to restart operations.

In a related development, during the Tuesday hearing, FTX attorney Andrew Dietderich reportedly averred that the exchange has amicably resolved contentious disputes with key creditor groups.

Complex Disputes Resolved with Creditors

According to Dietderich, FTX has arrived at a “preliminary resolution” with its creditors on a range of contentious disputes ahead of a proposed comprehensive payout strategy to be implemented by December.

While the exact percentage of customer recovery remains unclear, FTX’s trajectory post-sale or post-revival will likely determine the amount creditors stand to recoup from the exchange.

Read more about the testimony of an FTX customer against SBF:
FTX Customer Duped by SBF’s Lies Details Brutal $300K Loss

Stay updated on FTX’s bitcoin price manipulation plot as revealed during trial:
Shocking FTX Trial Unearths Bitcoin Price Manipulation Plan

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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