FTX mulls reboot proposals from bidders: Bloomberg

FTX filed for bankruptcy in November 2022

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Sergei Elagin/Shutterstock modified by Blockworks

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FTX has proposals from three bidders to bring the exchange — or a version of it — back to life, according to a Bloomberg report Tuesday.

At a court hearing, an investment banker for the company — Perella Weinberg Partners’ Kevin Cofksy — said it plans to make a decision on the proposals before the end of the year.

A few options are on the table, Cofsky allegedly informed the court. The exchange could be sold, an outside partner brought in to help reboot the exchange, or FTX could relaunch on its own — sans, of course, its previous CEO.

Former CEO Sam Bankman-Fried is currently on trial, facing seven federal fraud counts. He’s set to start week four of his trial later this week.

A filing revealed in early September that roughly 75 bidders had been contacted about “FTX 2.0.”

FTX announced, in early October, a proposed settlement of “customer property disputes” which would see roughly 90% of the funds returned to customers. The assets would be divided into three groups: FTX.US customers, a general pool, and assets for FTX.com. 

The proposal is set to be included in the reorganization plan set to be filed in December.

Back in September, the judge overseeing the bankruptcy case signed off on the guidelines for the sale of FTX’s digital assets.

The plan, as submitted, gave FTX the green light to sell roughly $100 million worth of digital assets each week.

Administrators in charge of the FTX estate continue to recover assets — having recovered roughly $7 billion — to repay creditors. Roughly $3.4 billion of that is in crypto.

FTX filed for bankruptcy in November of last year.


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