The bankrupt crypto exchange could soon be back in the business of crypto trading if enough capital is raised.
According to an April 18 report from Bloomberg, venture capital firm Tribe Capital is considering leading a $250 million fund-raising campaign to restart FTX. The firm, which invested in both FTX and its U.S. subsidiary FTX.US will contribute $100 million to the cause and will look to raise additional capital from external investors.
These efforts appear to already be underway. People familiar with the matter said that Tribe’s co-founder Arjun Sethi had met with FTX’s committee of unsecured creditors in January to discuss an informal proposal on the subject.
Tribe was formed in 2018 and currently has more than $1.6 billion worth of assets under management. The San Francisco-based firm has invested in a number of startups and technology companies, including crypto exchange Kraken.
The possibility of restarting FTX was formally put forth in a court hearing last week, with FTX’s lead bankruptcy attorney Andrew Dietderich stating that an exchange restart was being evaluated as part of the exchange’s reorganization plan. At the same hearing, Dietderich also disclosed that the exchange had recovered $7.3 billion in assets.
FTX’s committee of official creditors tweeted on Tuesday that they were working with the firm’s liquidators on options to reboot or sell the exchange, without being on a definitive timeline.
There is no definitive timetable for a reboot or sale of the exchanges at this time.
— Official Committee of Unsecured Creditors of FTX (@FTX_Committee) April 18, 2023
“Until a formal process is launched, parties interested in purchasing or sponsoring a reboot of the FTX exchanges should contact the Debtors and the Committee,” they said.