Silicon Valley’s Proof Group, a renowned investment firm, is making a bid to relaunch FTX, the crypto exchange that sent shockwaves through the industry when it collapsed nearly a year ago. Joining the Fahrenheit Consortium, Proof Group successfully acquired the assets of the insolvent crypto lender Celsius.
According to sources familiar with the matter, there are currently three potential options being considered for the revival of FTX. Proof Group, in collaboration with other interested parties, is leading the charge in efforts to relaunch the exchange, as reported by Coindesk.
The process of bringing FTX back to life is a complex one, with multiple avenues being explored. One option involves selling the entire exchange and transferring its nine million customers, while another possibility is establishing a partnership to restart operations. A decision on the future of FTX is expected to be reached by mid-December.
However, Proof Group is not the only contender in the race to revive FTX. Fintech and digital assets firm Figure, previously part of the NovaWulf group that bid for Celsius, has also expressed interest in reopening the crypto exchange. Tribe Capital, a venture capital investor, has submitted its own bid as well.
FTX’s comeback, however, faces regulatory hurdles. In August, FTX unveiled a plan to restart the international crypto exchange, allowing creditors to unite and pool their claims for the re-establishment. Notably, no compensation has been proposed for FTT token holders. The US Securities and Exchange Commission has classified the token as an unregistered security.
Meanwhile, Sam Bankman-Fried, the Founder and former CEO of FTX, was recently found guilty of seven counts of fraud, conspiracy, and money laundering following a five-week trial in New York. Bankman-Fried now faces a potential lengthy prison sentence, with his sentencing scheduled for March 28, 2024.
Outside the courtroom, US Attorney Damian Williams described Bankman-Fried’s actions as one of the most significant financial frauds in American history. Despite the guilty verdict, Bankman-Fried’s attorney has signaled an intention to appeal.
As the future of FTX hangs in the balance, the crypto industry eagerly awaits the outcome of these bids and the potential resurgence of the once-prominent exchange.
