Silicon Valley Firm Proof Group Joins Race to Revive FTX

• Proof Group, the successful bidder for Celsius, is now attempting to revive the collapsed exchange FTX.
• FTX’s potential relaunch options reportedly include a sale or partnership, with a decision anticipated by mid-December.
• The relaunch may face complexities akin to Voyager’s failed restructuring attempts.

Silicon Valley’s Proof Group, known for its recent successful bid on the bankrupt crypto lender Celsius as part of the Fahrenheit consortium, is reportedly in contention to revitalize the defunct crypto exchange FTX. 

This information comes from sources familiar with the ongoing plans. Previously, Perella Weinberg Partners, an investment bank involved in the process, disclosed that the options for FTX’s revival have been narrowed down to a shortlist of three, with Proof Group being one of them.

Kevin Cofsky of Perella Weinberg reportedly revealed that they were weighing the sale of the entire exchange, which boasts a customer base of 9 million, or potentially partnering with another firm. Cofsky noted that a resolution is expected by mid-December.

Proof Group, known for its venture capital investments in crypto projects like Aptos, Lightspark, and Sui, is not the only firm interested in bringing FTX back to life. Other contenders reportedly include venture capital firm Tribe Capital. Likewise, digital assets firm Figure, part of the NovaWulf consortium that unsuccessfully bid for Celsius, has also indicated an interest in reviving FTX.

FTX, one of the crypto world’s behemoths before its collapse nearly a year ago, has been exploring avenues for a potential comeback, with multiple entities expressing interest. It is worth mentioning that the situation around FTX is complex, involving multiple factors such as claims, token lockups, and compliance issues that must be addressed in any potential relaunch. 

The complexity is demonstrated in the unsuccessful attempts to restructure bankrupt crypto lender Voyager. According to bankruptcy expert Thomas Braziel, the founder of 117 Partners, the bankrupt Voyager reportedly experienced considerable interest from potential bidders seeking to restructure the company, provide tokens to creditors, and address various related issues but ultimately failed.