Interests have spawned from Bullish, Proof Group, and Figure Technologies concerning buying what remains of the failed cryptocurrency exchange FTX which has been undergoing bankruptcy and its former CEO now possibly facing decades in prison.
According to reports from the Wall Street Journal on Nov. 8, three possible buyers are already in motion toward acquiring and relaunching FTX. The report from WSJ shows that former New York Stock Exchange (NYSE) president Tom Farley is likely to buy FTX through his crypto exchange, Bullish. Among others, Crypto VC firm Proof Group and fintech startup Figure Technologies are also considering buying FTX.
The report also revealed FTX received interest from 70 potential buyers. But now, the final candidates are Bullish, Proof Group, and Figure Technologies, and a buyer could be chosen in December. The new owner could restart FTX’s operations after it leaves bankruptcy in 2024. However, the report highlights the possibility of another buyer emerging before the deal is complete, which makes the deal not guaranteed.
In the event of an FTX revival, affected customers may receive compensation in the form of shares or tokens. According to reports from WSJ, FTX currently owes customers $9 billion.
FTX was once one of the world’s biggest crypto exchanges, handling billions of dollars in daily trading volume. The crypto firm partnered with high-profile sports and celebrities. After reports of its collapse in November 2022, due to financial problems, customers were restricted from withdrawing funds as the company couldn’t pay users.
Sam Bankman-Fried, the founder of FTX, has recently been convicted of fraud. While he could potentially face up to 110 years in prison, it is anticipated that he will receive a shorter sentence. However, even if a buyer successfully reopens the platform in the coming months, the tarnished reputation of FTX may hinder its ability to attract new and returning customers.
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