Business Standard

FTX 2.0: Bankman-Fried's former crypto exchange outlines plan for reboot

More than 75 bidders have been contacted by the FTX estate since May to gauge industry interest in backing a relaunch of the exchange, according to a presentation filed in a Delaware court

FTX

Photo: Bloomberg

Bloomberg

Listen to This Article

By Emily Nicolle

A plan to reboot a new version of defunct crypto exchange FTX Group may emerge as soon as next year, potentially injecting a jolt of activity back into a market that’s been largely subdued since the platform’s collapse.
 

Click here to connect with us on WhatsApp

More than 75 bidders have been contacted by the FTX estate since May to gauge industry interest in backing a relaunch of the exchange, according to a presentation filed in a Delaware court. Several parties have submitted bids that are now undergoing due diligence and information sharing, managers of the estate said, with a deadline for any new bids set for Sept. 24.
 

FTX was one of the world’s largest digital-asset trading platforms prior to its bankruptcy in November. It was a key part of the crypto empire controlled by its now-jailed chief executive Sam Bankman-Fried, who is set to stand trial on fraud and other charges next month. FTX’s failure, along with sister platforms FTX.US and Alameda Research, triggered an industry-wide fallout that left billions of dollars in assets locked up in customer claims. Bankman-Fried has pleaded not guilty to all the counts against him..

The FTX estate’s bidding process is considering varying potential structures for a potential “FTX 2.0”, it said. Any eventual deal could see it negotiate “an acquisition, merger, recapitalization or other transaction to relaunch the FTX.com and/or FTX US exchanges,” according to the filing. 

Chart


A stalking-horse bid, referring to the baseline offer that any subsequent bidders must improve upon, is to be selected by Oct. 16 with an amended plan filed by year-end. Confirmation of the target plan is expected in the second quarter of 2024, the filing said.

A total of $16 billion in customer claims against FTX and its varying companies were filed as of Aug. 24, with nearly $11 billion in claims scheduled by the estate against the FTX.com and FTX.US exchanges. Meanwhile, the estate has recovered around $7 billion in assets across FTX’s web of accounts and global entities, the filing said, including $3.4 billion denominated in cryptocurrencies. 

A map displaying the network of Bahamian properties owned by defunct crypto exchange FTX
A map displaying the network of Bahamian properties owned by defunct crypto exchange FTX (Photo: Bloomberg)


The company’s network of 38 properties spread across the Bahamas, once FTX’s home base, has been assigned a book value of $222 million. The portfolio includes a $151 million compound of condo units and a penthouse inside Albany Marina. 

--With assistance from Jeremy Hill and Jonathan Randles.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 11 2023 | 11:40 PM IST

Explore News