In August, FTX unveiled its official plan for the international crypto exchange’s revival. This strategy allows creditors to unite and pool their claims to re-establish the platform. Two options are being explored: selling the entire exchange and transferring its nine million customers or forming a partnership. The decision on FTX’s future is expected to be made by mid-December.
The Race to Resurrect FTX
The revival of FTX is a complex process with various interested parties involved. One of them is Proof Group, a venture capitalist known for financing cryptocurrency initiatives, including Aptos, Lightspark, and Sui. Additionally, digital assets company Figure, previously a member of the NovaWulf group, has shown interest in reviving FTX. Tribe Capital, another venture capital investor, has also proposed.
The FTX bankruptcy process involves claims, token lockups, and compliance issues. Rebooting the exchange is not a straightforward task. This complexity is exemplified by the bankruptcy of crypto lender Voyager, which attracted hopeful bidders but faced challenges in restructuring the firm and offering tokens to creditors.
Compensation and Legal Developments
Notably, there has been no proposed compensation for FTX’s FTT token holders. In legal developments, Sam Bankman-Fried, the Founder and former CEO of FTX, was recently found guilty of seven counts of fraud, conspiracy, and money laundering after a five-week trial in New York. His sentencing is scheduled for March 28, 2024, and he faces potential decades in prison.