Silicon Valley’s Proof Group, a renowned investment
firm, is bidding to relaunch FTX, the crypto exchange that shook the industry
when it collapsed nearly a year ago. Proof Group is part of the Fahrenheit
consortium that successfully bid to acquire the assets of the insolvent crypto
Currently, there are three potential options under
consideration, and Proof Group, in collaboration with other interested parties,
is at the forefront of the efforts to relaunch FTX. This is according to a
report by Coindesk, which cited people familiar with the plans.
Race to Relaunch FTX
The revival of FTX is a complex process with
multiple avenues being explored. One option involves selling the entire
exchange, along with its valuable nine million-strong customer list.
Alternatively, a partnership could be established to bring FTX back to life.
The decision regarding FTX’s future is anticipated to be reached by
mid-December, a crucial turning point in this chapter.
Proof Group is not the only player eyeing FTX’s
resurgence. Fintech and digital assets firm Figure, which previously bid for
Celsius as part of the NovaWulf group, is among those interested in FTX’s
revival. Additionally, Tribe Capital, a venture capital investor, has submitted
its bid, making this race to relaunch FTX an intense competition.
FTX’s Comeback amid Regulatory Hurdles
In August, FTX officially unveiled a plan to restart the international crypto exchange. This strategy allows creditors to join
forces and pool their claims for the relaunch. However, it’s worth noting that
no compensation was proposed for FTT token holders, as the US Securities and
Exchange Commission (SEC) has classified the token as an unregistered security.
Meanwhile, Sam Bankman-Fried, the Founder and former
CEO of FTX, was found guilty on all seven counts of fraud, conspiracy, and
money laundering following a five-week trial in New York last week.
Bankman-Fried now faces decades in prison, with his sentencing scheduled for
March 28, 2024.
US Attorney Damian Williams, outside the courtroom,
labeled Sam Bankman-Fried’s actions as one of the most significant financial
frauds in American history. Despite the guilty verdict, Bankman-Fried’s
attorney has signaled an intention to appeal.
This article was written by Jared Kirui at www.financemagnates.com.