Bankrupt crypto exchange FTX's plan to relaunch has reportedly seen attention from Tribe Capital, a San Francisco-based venture capital (VC) firm with over $1.6B assets under management.
A
recent report from Bloomberg citing people familiar with the issue has
pointed out that the firm is preparing to lead a $250M fundraising
campaign to revive the exchange.
- The $250M funding will include $100M financing from Tribe itself and its limited partners.
- FTX's attorney Andy Dietderich recently revealed
that the firm was assessing the possibility of relaunching the exchange
with its stakeholders, stating that the company recovered over $7.3B of
crypto assets in cash and liquid.
- Dietderich also said the bankrupt exchange would make a final decision on a possible relaunch within the current quarter.
- The firm attorney added that a possible restart would require a significant amount of capital.
- According
to Bloomberg's report, Tribe's bid includes an estimated 9 million
customer accounts, FTX US, FTX Australia, FTX Japan, FTX EU, FTX
International, and LedgerX, excluding the VC portfolio and crypto
assets.
- If the proposal becomes successful, the exchange will be relaunched under the name of FTX again.
- FTX's native token, FTT, increased by 18% in value following the news.
- Tribe invested in many crypto-related firms, including FTX, FTX US, and Kraken, in the past.
- FTX, previously the third-largest crypto exchange, filed for Chapter 11 bankruptcy in November 2022, with all the entities under the roof of FTX Group consisting of around 130 firms.
- The downfall followed the claims that the exchange's former CEO, Sam Bankman-Fried (SBF), used customer funds in FTX to compensate for losses at FTX's sister company Alameda Research.
- SBF currently faces trial with 13 charges, including bank fraud, money laundering, and bribery, to which he pleaded not guilty.
