FTX Trading Ltd., formerly one of the globe’s most prominent crypto exchanges, is currently assessing offers from three undisclosed bidders as the company aims to rejuvenate its operations after filing for bankruptcy due to allegations of fraud.
Kevin M. Cofsky from Perella Weinberg Partners, who represents FTX as an investment banker, shared this information during a court session in Wilmington, Delaware on Tuesday. He revealed that a firm decision on the direction forward would be taken by mid-December, according to Bloomberg.
According to Cofsky, the possibilities for FTX are not limited to selling the exchange, which boasts an impressive roster of over 9 million clients. The company is also exploring the potential of teaming up with a strategic partner to breathe new life into the exchange or even considering a complete overhaul of the trading platform independently.
During his statements, Cofsky emphasized, “We are engaging with multiple parties every day,” though he chose not to reveal the identities of the interested bidders.
FTX’s journey since its bankruptcy filing last year has been primarily focused on pooling resources to reimburse its creditors.
From their endeavors, administrators have managed to salvage approximately $7 billion in assets, of which $3.4 billion is in the form of crypto.
There have been challenges, but FTX, along with its primary creditor factions, have managed to resolve some of the more pressing disagreements, remarked company lawyer Andrew Dietderich.
This resolution will pave the way for a comprehensive payout plan to be presented in December.
However, Dietderich pointed out that the exact recovery rate for customers remains uncertain and will be largely contingent on the potential value derived from the sale or the revival of the exchange.
Adding to FTX’s tumultuous past, its founder, Sam Bankman-Fried, had stepped down from his position as CEO in the preceding year. Bankman-Fried faces legal proceedings in New York over allegations that he diverted FTX client funds to another enterprise under his management.
The diverted funds were reportedly utilized for high-stake trades, political contributions, and the acquisition of luxury properties before both firms went under.
