The year 2022 has been among the most notable years for the cryptocurrency market. It has seen some unprecedented incidents that may set the course for the industry in the times to come. The collapse of the once-leading cryptocurrency exchange, FTX, is among those turning points. Recently, the company is reportedly indulging in the planning for a reboot and repaying the creditors.
Bloomberg reported that Bahamian cryptocurrency exchange company, FTX Trading, is in contact with three potential bidders. These bidders put forward the proposal of restraining the trading platform again.
Kevin M Cofsky, partner at an investment firm Perella Weinberg Partners, stated during the hearing in the bankruptcy court that the FTX will come to a decision by mid-December this year. In the hearing on Tuesday in Wilmington, Delaware court, the company’s investment banker also added that the crypto exchange is in the negotiation phase with investors over the details of potential binding offers.
Though Cofsky did not disclose any names of potential bidders to the U.S. Bankruptcy Judge John Dorsey, he affirmed that the company is constantly in contact with them.
As for the potential offers, there are multiple options on the table including a list of over 9 Million customers of cryptocurrency exchange, to bring a partner and help the exchange to restart the operations or even sell the entire firm.
In addition, Cofsky stated that FTX is considering the option of reinstating the crypto exchange on its own.
FTX’s Efforts to Repay Creditors
Despite the company’s insolvency and top executives leaving it amid the whirl, the company is constantly making efforts to repay the creditors and start the business again.
According to the Bloomberg report, Sam Bankman-Fried founded crypto exchange has been continuously trying to accumulate funds and pay back the creditors ever since it filed for bankruptcy in November 2022. Following the efforts, it succeeded in recovering a notable amount.
The court documents revealed that FTX recovered up to $7 Billion in assets which includes $3.4 Billion worth of crypto assets to date.
FTX attorney Andrew Dietderich reportedly stated in the court that the company and creditors are also working in tandem to settle some sensitive and difficult disputes in the case. With these constructive steps in play, the crypto firm is able to file a “detailed payout plan” by December this year.
According to Dietderich, the case of FTX is different as it does not have any idea of how much it can pay back to the customers. Usually, the companies have an idea during the bankruptcy process for an estimated percentage of how much recovery can be expected.
The percentage of recovery depends on some uncontrollable factors such as if the company is going to restart or will be sold off completely, he added.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/10/27/ftx-may-be-operational-again-bidders-and-proposals-in-line-report/