FTX Gears Up for Relaunch: Three Contenders Emerge for Mid-December Decision – Coinpedia Fintech News
Cryptocurrency exchange FTX is actively engaged in discussions with several potential bidders as it aims for a resurgence before the conclusion of 2023, according to a recent report from Bloomberg. This development comes as the former CEO of FTX, Sam Bankman-Fried, faces ongoing legal trials, raising the stakes for the exchange’s future.
Before Judgement, FTX’s Revival Plans Sounds Fishy?
FTX Trading Ltd., formerly one of the world’s largest crypto exchanges, is seeking proposals from three prospective bidders, with the final decision on its path forward expected to be reached by mid-December. Kevin M. Cofsky, an investment banker at Perella Weinberg Partners representing FTX, disclosed these deliberations during a court hearing in Wilmington, Delaware.
The options under consideration are diverse, including the possibility of an outright sale of the exchange. Such a move would entail transferring ownership, including a valuable customer base of over nine million users. Another option is to seek a strategic partnership, potentially involving a joint effort to relaunch the trading platform. Furthermore, FTX considers the ambitious prospect of revitalizing its trading operations independently.
Notably, Cofsky explained, “We are engaging with multiple parties every day,” yet refrained from divulging the identities of the potential bidders.
Road to Recovery!
FTX has been actively raising capital to repay creditors after filing for bankruptcy in the preceding year. The company’s administrators have successfully recovered assets valued at around $7 billion, including a substantial $3.4 billion in cryptocurrencies, as evidenced by court documents.
In the current process, FTX and its primary creditor groups have reached provisional settlements for some of the most contentious disputes associated with the case. These developments are expected to clear the path for filing a comprehensive payout plan in December. However, the exact reimbursement percentages for customers remain uncertain. The final amounts will be contingent on the outcome of a potential sale or the relaunch of the exchange.
With Restart Plans, will FTX Recover This Year?
FTX’s price direction currently hinges on whether it maintains levels above $1.214. Interestingly, if it stays above this threshold, an ascending trend continues. Breaking the resistance at $1.278 could spark a bullish rally toward $1.340. Conversely, if bears take control and a trend reversal occurs, the FTT token could see a price drop. Failing to sustain above $1.214 might test support at $1.150. Overall, the trial outcome of Sam Bankman-Fried may also influence FTT’s performance.
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