LONDON – A plan to reboot a new version of defunct crypto exchange FTX Group may emerge as soon as 2024, potentially injecting a jolt of activity back into a market that has 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 in the United States. 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 Sept 24.
FTX was one of the world’s largest digital asset trading platforms prior to its bankruptcy in November 2022. 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 in October. FTX’s failure, along with sister platforms FTX.US and Alameda Research, triggered an industrywide 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.
Varying potential structures for a potential “FTX 2.0” are being considered in the bidding process. 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 bidder must improve upon, is to be selected by Oct 16, 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 total of US$16 billion (S$21.8 billion) in customer claims against FTX and its various companies were filed as at Aug 24, with nearly US$11 billion in claims scheduled by the estate against the FTX.com and FTX.US exchanges. Meanwhile, the estate has recovered around US$7 billion in assets across FTX’s web of accounts and global entities, the filing said, including US$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 US$222 million. The portfolio includes a US$151 million compound of condominium units and a penthouse inside Albany Marina. BLOOMBERG
