FTX Up For Sale: Who Will Buy The Crypto Wreckage?

Bankrupt crypto exchange FTX Trading Ltd. is now reviewing offers from three potential buyers.

The forthcoming decisions surrounding FTX's future are expected to garner significant attention, especially with the crypto community converging at Benzinga's Future of Digital Assets conference on Nov. 14.

Kevin M. Cofsky from Perella Weinberg Partners, FTX's investment banker, stated during a Delaware court hearing the company is in discussions regarding binding offers and is set to make a decision by mid-December, Bloomberg reported.

Cofsky mentioned several possibilities, including "selling the entire exchange" with its extensive database of more than 9 million customers, collaborating with a partner for a relaunch or independently reviving the platform.

“We are engaging with multiple parties every day,” Cofsky noted, keeping the identities of the bidders confidential.

Since its bankruptcy declaration last year, FTX embarked on a mission to accumulate funds to compensate its creditors.

Also Read: Bitcoin ETF Vanishes From DTCC Site, BTC Price Dips: Market Reacts To BlackRock's Anticipated Fund Disappearance

Court records revealed company administrators managed to reclaim assets worth approximately $7 billion, which encompasses $3.4 billion in cryptocurrency.

Andrew Dietderich, the FTX's lawyer, disclosed FTX and its primary creditor groups have reached preliminary agreements on some major disputes.

This consensus paved the way for a comprehensive repayment plan to be unveiled in December.

Dietderich explained that while such plans usually provide creditors with a recovery estimate, the exact percentage for FTX remained uncertain, depending largely on the returns from a potential exchange sale or reboot.

FTX founder Sam Bankman-Fried stepped down as CEO last year amidst financial chaos.

Bankman-Fried is currently facing a trial in New York, charged with allegedly diverting FTX client funds to another enterprise under his control.

Read Next: Bitcoin Bull Run Incoming? Analyst Advises: Keep An Eye On Potential Upside Wicks

Join Benzinga's Fintech Deal Day & Awards on Nov. 13 and Future of Digital Assets on Nov. 14 in New York City to stay updated on trends like AI, regulations, SEC actions and institutional adoption in the crypto space. Secure early bird discounted tickets now!

Photo: Shutterstock