FTX Exchange Attracting Potential Buyers
The bankrupt FTX crypto exchange is generating interest from multiple potential buyers, including a company owned by Tom Farley, the former chairman of the New York Stock Exchange (NYSE). The Wall Street Journal reported the news on Wednesday, citing sources familiar with the matter.
FTX Nears Sale As Three Bidders Emerge
FTX, founded by Sam Bankman-Fried, is heading towards a sale as it exits bankruptcy next year. Three bidders are in contention to acquire the exchange and relaunch it. Bullish, led by Tom Farley, Figure Technologies, and Proof Group are the potential buyers.
FTX received interest from over 70 parties and shortlisted three of them, as per a banker advising FTX at a hearing last month. The winner could be announced in December. The deal is not certain and there could be another bidder.
FTX Revival Plan and Customer Base
In August, FTX announced a plan to revive the global crypto exchange, allowing creditors to merge their claims for its reactivation. However, no compensation was offered for FTT token holders as the token was deemed an illegal security by the U.S. Securities and Exchange Commission.
Some potential buyers may not want the FTX brand for the new crypto exchange but acknowledge the value of FTX’s 9 million customers. One option is to sell them to another exchange and drop the FTX brand.
The buyer must assess how many customers are unique and compare databases without revealing anyone’s identity.
SBF Will Likely Seek A Review
FTX was a significant crypto exchange until its failure in November 2022. Its founder, Bankman-Fried, was found guilty of stealing customer funds and faces up to 110 years in jail. Despite this conviction, his lawyer stated that he will continue fighting the charges.
Bankman-Fried’s sentencing is scheduled for March 28, 2024, and will depend on various factors such as his history and the details of the crime. He still has another trial in March for allegedly bribing Chinese officials with $40 million and making over 300 illegal political donations in the US.
Hot Take: Future of FTX Exchange Remains Uncertain
The fate of FTX remains uncertain as potential buyers line up to acquire the bankrupt crypto exchange. With three bidders vying for its relaunch post-bankruptcy next year, it remains to be seen who will emerge victorious and what direction they will take with regards to reviving the global crypto platform. Additionally, legal battles involving its founder further cloud the future of FTX.
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