Three bidders are back in negotiations with FTX Trading Ltd. to restart the defunct cryptocurrency exchange.
Bloomberg reports that a decision on the exchange’s revival will be made by mid-December. Investment banker Kevin M. Cofsky of Perella Weinberg Partners, representing FTX, stated in a Wilmington, Delaware court proceeding that the company is discussing specifics of possibly binding offerings with investors.
Selling the complete exchange, including its valuable customer base of over 9 million, or enlisting the aid of a partner to assist in relaunching the trading platform are two potential strategies for reviving FTX.
Cofsky revealed to US Bankruptcy Judge John Dorsey that FTX is also considering reviving the cryptocurrency exchange. Investment banker Kevin M. Cofsky said:
“We are engaging with multiple parties every day.”
Debts From FTX Following Bankruptcy
Due to a significant lack of assets to meet its debts to customers, FTX filed for bankruptcy on November 11. This judgment was made a few days after the platform’s creator, Sam Bankman-Fried, was discovered to have improperly utilized customer cash for questionable investments during an examination into liquidity issues at the cryptocurrency exchange.
FTX has been attempting to obtain funding to settle debts owed to creditors since declaring bankruptcy last year. Court records state that FTX officials have retrieved assets valued at around $7 billion, of which $3.4 billion is cryptocurrency.
According to business attorney Andrew Dietderich, in court, FTX and its key creditor groups have reached a provisional settlement on some of the most complicated issues in the case, enabling the firm to present a comprehensive payment plan in December.
