FTX Might Restart Operations Amid Negotiations with 3 Bidders: Report
- FTX is negotiating deals with three bidders and is also considering restarting operations.
- A detailed plan will be out by mid-December, revealing the firm’s future plans, explained the lawyers.
- The management might consider selling the exchange as a whole or bringing in a partner to rebrand the firm.
- A detailed payout plan for the creditors will be out in the month of December as well.
Bankrupt crypto exchange FTX is seeking to restart operations following negotiations with three bidders, as per a recent report. Interestingly, the firm’s new management revealed their intentions of rebranding the exchange multiple times in the past, and it is clear that the firm is now moving forward in that direction.
According to a report from Bloomberg published on October 24, the new FTX management is considering bids from three entities and plans to restart trading in the near future. Interestingly, the firm will take its final decision on the matter by mid-December, marking a fresh start for the disgraced crypto exchange that wiped off billions from the digital asset sector.
Some of the options include selling the crypto trading platform as a whole, including its 9 million customers, or bringing in another partner to collaborate and rebrand FTX, confirmed Kevin M. Cofsky of Perella Weinberg Partners on Tuesday during a court hearing in Wilmington, Delaware. The management is currently negotiating deals with multiple bidders.
“We are engaging with multiple parties every day,” Cofsky told US Bankruptcy Judge John Dorsey while not revealing the names of the bidders involved in the process.
Interestingly, bankruptcy lawyers have been working round the clock since the collapse of FTX under its previous management headed by Sam Bankman-Fried, also known as SBF in the crypto space, to figure out the next step for the exchange. Interestingly, as per court documents, the administrators have so far recovered about $7 billion in assets, including $3.4 billion of crypto from the platform.
Company attorney Andrew Dietderich confirmed that FTX and its major creditors had tentatively settled some of the most difficult disputes in the case, which will allow the digital asset trading platform to come up with a detailed payout plan in the month of December. Such plans usually provide the creditors with an estimate, which is usually a percentage of their investments, which they can expect to recover.
Dietderich also noted that the exchange does not currently know what percentage of money the customers will get back. The recovery will be significantly different depending on how much FTX is sold for or how much revenue it clocks in once rebooted.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
