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, which successfully bid to acquire the assets of the insolvent crypto lender Celsius.
Currently, there are three potential options under consideration. 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 matter.
Race to Relaunch FTX
The revival of FTX is a complex process with multiple avenues being explored. One option involves selling the entire exchange and transferring its nine million customers. Alternatively, a partnership could be established to restart the crypto exchange. The decision regarding FTX's future will reportedly be reached by mid-December.
Proof Group is not the only player eyeing FTX's resurgence. Fintech and the digital assets firm Figure, which previously bid for Celsius as part of the NovaWulf group, is among those interested in reopening FTX. Additionally, Tribe Capital, a venture capital investor, has submitted its bid.
FTX's Comeback and 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 re-establishment. However, it's worth noting that no compensation was proposed for FTT token holders. The US Securities andExchange Commission has classified the token as an unregistered security.
Meanwhile, Sam Bankman-Fried, the Founder and former CEO of FTX, was found guilty of 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.
Outside the courtroom, the US Attorney, Damian Williams, labeled 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.
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