Insolvent FTX Trading Ltd is taking proactive steps towards resurrecting itself, as the exchange is presently in talks with potential bidders with the aim of either selling the crypto company or forging strategic partnerships to possibly stage a comeback into the crypto market.
FTX Aims For A Resurgence
Bankrupt crypto exchange FTX is making efforts to bounce back from insolvency and possibly restart its operations. According to Bloomberg reports, the exchange has disclosed three potential bidders emerging with their various proposals for the future of FTX.
Presently, there have been no reports revealing details on the identities of the investors and discussions are ongoing as the crypto exchange is carefully evaluating bidding offers. There are also various options FTX is currently considering, including selling off the entire crypto exchange for its worth in value despite its current reputation.
This option would also include giving out the exchange’s valuable customer records which hold approximately over 9 million users. Another alternative is entering a partnership that would help relaunch the crypto exchange.
In a court hearing in Wilmington, Delaware, Financial Investor and partner in Perella Weinberg Advisory business, Kevin M. Cofsky revealed that further proceedings regarding the resurgence of the insolvent crypto exchange will be conducted by December.
As the negotiations and discussions continue, the crypto community, predominantly those affiliated with the crypto exchange, is watching closely. The results of the discussions will give more insight into the future of FTX and its position in the crypto space.
A Rollercoaster For Customers
While reports of FTX’s probable revival are welcome news to some crypto enthusiasts, a good number of crypto investors may not be so optimistic. The exchange was previously hailed as one of the largest crypto exchanges in the world, however, now the exchange is battling legal challenges and bankruptcy issues.
Former CEO and Founder of FTX, Sam Bankman-Fried is currently facing trial on charges of multiple counts of fraud and accusations of misappropriating customer funds. The exchange’s founder is presently defending his position after pleading not guilty on all accounts at a former hearing in the ongoing trial.
In an attempt to salvage its reputation and compensate victims and users of the failed exchange, FTX has made known its plans to return about 90% of customer’s funds to users in a segregated manner. A portion of the funds would reportedly go to FTX.com customers and another portion to FTX.US users.
Following the announcement of plans to resolve customer property disputes, many users of the crypto exchange have reported receiving withdrawal hoax emails offering false offers aimed at scamming users.
Presently, the legal proceedings between the founder and the United States Department of Justice (DOJ) are reaching a near end. The former FTX CEO is scheduled to appear in court on Wednesday, October 26 to further defend his case.