News - Who will reopen FTX in the future?

By Mike Hesp

Who will reopen FTX in the future?

FTX
Developments
USA

Of the 75 candidates seeking to take over FTX, only three remain. What is known about the candidates?

The rise of FTX was unprecedented. Sam Bankman-Fried's crypto exchange, founded in 2019, quickly became a heavyweight in the industry. The company was worth $32 billion at one point, with a customer base of nearly 10 million people. Then came its abrupt demise in November 2022, when the innovative company so celebrated by the scene turned out to be a massive scam. The crypto empire allegedly embezzled billions, including money from institutional investors and private customers. Founder Sam Bankman-Fried, known in the scene only as SBF, has now been found guilty and justice appears to have been done.

A year after the collapse, there are increasing signs that the crypto exchange is making a comeback. Under new management and new structures. What is known so far about FTX's reopening?

Much has happened at FTX since its demise. An experienced receiver has been appointed to help the crypto company get back on its feet and raise money to pay out injured customers. Several proceedings are currently underway, for example, against the parents of SBF or against K5, an investment company through which the former crypto tycoon bought influence in the celebrity world.

Three shortlisted candidates

In the background, however, management is also preparing for a relaunch of the crypto exchange. Rumors of a reopening have been circulating for months. FTX was in talks with nearly 75 investors, all of whom wanted to explore the possibility of a relaunch. The bidding has now been reduced to three candidates: Bullish, Figure and the Proof Group. This reported Fox Business based on internal sources. What is known so far about the contenders?

Proof Group

Proof Group is a Silicon Valley investment firm. It is part of the "Fahrenheit" consortium, a merger of several companies that recently successfully acquired the insolvent crypto lending service Celsius. Proof Group is also involved in other projects. Some of these include: Aptos, Lightspark and Sui. The company is headed by Noah Jessop, who already has a long resume with positions at various crypto companies.

Figure Technologies

Figure is a fintech start-up from the US. Founder and CEO Mike Cagney previously headed crypto investment platform SoFi for a long time. With his new company, Cagney offers lending services using blockchain technology.

After the bankruptcy of Celsius, Figure also tried to take over the crypto borrower, but was eventually defeated by the Fahrenheit consortium.

Bullish

The latest contender to acquire FTX is Bullish, a crypto exchange headquartered in Gibraltar. Its CEO, Tom Farley, has a background in traditional finance, including several years at the New York Stock Exchange. Bullish is backed by a number of prominent investors. Some of these include PayPal founder Peter Thiel's Founders Fund and hedge fund manager Louis Bacon.

Decision in December

According to Fox Business, the final decision on who wins the bid will be made in December. Whether FTX generally returns to the market also depends on the goodwill of the Securities and Exchange Commission (SEC). The head of the U.S. Securities and Exchange Commission, Gary Gensler, recently indicated he was open to a reopening. However, the exchange would have to meet strict regulatory requirements. Specifically, Gensler said, "If Tom or anyone else wants to be active in this area, then only in accordance with the law." It is also important that (unlike in the past) "functions are not mixed and used against customers. Or that their crypto assets are misused for their own purposes," the SEC chief continued.

Because of the scandalous history surrounding FTX and Alameda industry observers also think a rebranding of the crypto exchange is possible. Meanwhile, news of the reopening caused an explosion in the price of FTT. FTX's own token recorded an increase of more than 70 percent at times. FTT is currently trading at $2.18.

Higher compensation for FTX customers?

Meanwhile, duped customers are still waiting for their money to be refunded. New movement came in mid-October when the bankrupt company's bankruptcy trustee promised almost full compensation.

According to him payouts of up to 90% would be possible. The trustee is currently still in discussions with the U.S. government regarding tax issues. The compensation plan must be filed with the insolvency court in the US state of Delaware by December 16.

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