Bidding Process Underway for Potential Revival of FTX
FTX Group is reportedly set for a potential revival.
The defunct cryptocurrency exchange’s estate has reached out to over 75 potential bidders since May, and several bids have already submitted, Bloomberg reported Monday (Sept. 11), citing a presentation filed in a Delaware court. The bids are undergoing due diligence and information sharing, and the deadline for new bids is Sept. 24.
The FTX estate is exploring various potential structures for FTX 2.0, such as acquisition, merger, recapitalization or other transactions to relaunch FTX.com and/or FTX US exchanges, according to the report.
A stalking-horse bid, which will serve as the baseline offer for subsequent bidders, will be selected by Oct. 16, the report said. An amended plan will be filed by the end of the year, with confirmation of the target plan expected in the second quarter of 2024.
FTX was previously one of the world’s largest digital-asset trading platforms before its bankruptcy in November. Founder Sam Bankman-Fried, who is now facing trial on fraud and other charges, controlled the crypto empire that included FTX. The collapse of FTX, along with sister platforms FTX.US and Alameda Research, had a significant impact on the industry, leaving billions of dollars in customer claims unresolved. Bankman-Fried has pleaded not guilty to all charges.
Customer claims against FTX and its associated companies currently amount to $16 billion, with nearly $11 billion related to FTX.com and FTX.US exchanges, according to the report. The estate has managed to recover approximately $7 billion in assets, including $3.4 billion in cryptocurrencies, from FTX’s various accounts and entities. Additionally, FTX owns a network of 38 properties in the Bahamas, valued at $222 million.
It was reported in June that FTX was looking to relaunch its exchange amid the ongoing legal fallout from its collapse. CEO John J. Ray III — who was appointed to manage FTX’s bankruptcy process after its collapse — told The Wall Street Journal at the time that the cryptocurrency company had “begun the process of soliciting interested parties to the reboot of the FTX.com exchange.”
A June 22 court filing showed that at least 363 “sales parties” were interested in buying the brand and the bones of FTX and had gone as far as signing non-disclosure agreements seeking more details about the restructuring and possible reboot of the exchange.
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