The FTX bankruptcy team is exploring ways to restart FTX crypto services on behalf of a proposal from three bidders.
FTX was a popular, second-ranked crypto exchange that went bankrupt last November following news from the Coindesk media about the company’s falsified financials. Allegedly, Sam Bankman-Fried (SBF, co-founder and former CEO of FTX) misused customers’ money for personal benefits, grants, political donations, etc. Currently, SBF is in jail on various fraud charges.
On October 24, 2023, Bloomberg reported FTX’s bankruptcy team is considering whether to accept the FTX restart proposal from three bidders.
At a court hearing in Delaware, the company’s investment banker, Kevin M. Cofsky of Perella Weinberg Partners, said the decision to restart the FTX exchange will come in mid-December this year.
Cofsky said they will negotiate with bidders to determine the best approach to restarting the exchange, which could include selling the entire exchange, including a valuable list of more than 9 million customers.
He also confirmed that there are some opportunities where FTX can restart its services without the help of a third party as a large portion of the money has been recovered.
To date, the FTX bankruptcy team has recovered $7 billion in funds, including $3.4 billion in crypto assets, led by current FTX CEO John Ray III.
Currently, Gary Wang, the little-known co-founder of FTX, and Caroline Ellison, former CEO of FTX’s sister company Alameda Research, are working together on the FTX case against Sam Bankman-Fried (SBF) to solve the case and identify the main culprit behind the case to find. FTX downfall.
To date, evidence and facts have confirmed that it was SBF that abused its power to provide misleading financial information regarding the FTX exchange and seriously misused FTX client money to bail out Alameda Research.
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