FTX is carefully charting its path forward, with several options on the table, including a potential sale or revival of the cryptocurrency exchange. This pivotal decision is set to be made by mid-December, as revealed during a court hearing in Wilmington, Delaware, where Kevin Cofsky, FTX’s investment banker from Perella Weinberg Partners, disclosed that active negotiations with multiple investors are already underway.
Among the possibilities being weighed, FTX is considering the sale of the entire exchange, including its extensive customer base of over nine million users. Alternatively, the company is exploring the option of forming a partnership with another entity to breathe new life into the platform. There is also contemplation of FTX independently revitalizing its trading platform. The identities of potential bidders have not been disclosed.
The cryptocurrency exchange found itself in bankruptcy last year, seeking to raise funds for creditor repayment. Court records indicate that FTX administrators have successfully recovered approximately $7 billion in assets, including a substantial $3.4 billion in cryptocurrency.
In a positive development, it was disclosed during the court proceedings that complex disputes with key creditor groups have reached a preliminary resolution. This paves the way for FTX to proceed with a comprehensive payout strategy by December. However, the exact percentage of customer recovery remains undetermined and will largely depend on whether the exchange is sold or revitalized.
Former FTX CEO Sam Bankman-Fried currently faces a criminal trial in New York. He is accused of diverting FTX customer funds to a separate entity under his control, which allegedly financed high-risk trades, substantial political contributions, and the acquisition of luxury properties.