FTX reboot plan in the works
A plan to reboot a new version of the 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.
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 24 September.
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, recapitalisation or other transaction to relaunch the FTX.com and/or FTX US exchanges,” according to the filing.
A stalking-horse bid, referring to the baseline offer that any subsequent bidders must improve upon, is to be selected by 16 October 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 timeline for a potential reboot of FTX 2.0 as detailed in the exchange’s bankruptcy plan on 11 September 2023.
A total of $16 billion in customer claims against FTX and its varying companies were filed as of 24 August, 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.
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.
A map displaying the network of Bahamian properties owned by defunct crypto exchange FTX.
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