According to Cointelegraph: After undergoing bankruptcy proceedings, FTX Trading Ltd., previously a key player in the digital currency exchange industry, is reportedly mulling over options for its future, which could include selling the entire exchange or forming a partnership to revitalize the platform.
The company's investment banker from Perella Weinberg Partners, Kevin M. Cofsky, stated during a court hearing in Wilmington, Delaware, that a concrete decision about the company's direction would likely emerge by mid-December. Negotiations are currently active with various potential investors regarding binding offers.
FTX, which boasts a substantial customer base of over 9 million users, is contemplating selling the whole exchange. Another option under consideration is partnering with another entity to revive the platform. Cofsky has also deliberated on the possibility of FTX independently rejuvenating its trading platform. The potential bidders' identities remain undisclosed.
Post-declaring bankruptcy last year, FTX has been striving to collect funds to repay its creditors. According to court documents, FTX administrators have managed to regain approximately $7 billion in assets, a significant portion of which ($3.4 billion) is in digital currencies. The company's attorney, Andrew Dietderich, indicated during the court proceedings that FTX has made preliminary progress in resolving some intricate issues with major creditor groups. This development paves the way for FTX to carry out a detailed payout plan by December. However, the exact percentage of recovery for customers will depend mainly on the decision to either sell or revive the exchange.
FTX encountered a major blow when its founder, Sam Bankman-Fried, stepped down as CEO in response to the suspension of its trading platform due to financial issues. Bankman-Fried is currently facing a trial in New York over allegations of misappropriating FTX customer funds. These funds allegedly financed high-risk trades, hefty political donations, and the purchase of luxury properties, causing the downfall of his business.
