FTX keeps restarting with continuous good news, has established three acquisition parties, and is currently buying users’ assets off the market at a 50% discount.

FTX Reaps Continuous Good News, Secure Deals with Three Acquisition Parties, and Thrives on Market by Purchasing User Assets at Half Price

Compiled by: Felix, LianGuaiNews

Since FTX’s newly appointed CEO John J. Ray III announced in June that FTX had “begun soliciting interested parties to relaunch FTX.com exchange,” notable companies including Nasdaq, Ripple Labs, Galaxy Digital, BlackRock, Robinhood, and NYDIG have all expressed interest in the relaunch of FTX 2.0. Even companies like BlackRock have been contacted and have signed confidentiality agreements to seek more detailed information regarding restructuring and the relaunch of the exchange.

After 5 months, news about the relaunch of FTX has resurfaced, and even some people have started “bargain hunting.” Will it relaunch? When will it relaunch? This article will take you on an exploration to find out.

Three Candidate Companies Established

On November 8th, according to sources familiar with the matter cited by The Wall Street Journal, the cryptocurrency exchange Bullish operated by Tom Farley, former president of the New York Stock Exchange, the fintech startup Figure Technologies, and the crypto venture capital firm Proof Group are competing to acquire FTX.

• Deep Report Trends and Opportunities – How to find an entry point in the TON ecosystem?
• Exclusive Interview with OrdzGames How Was the First PVP Blockchain Game in the Ordinals Ecosystem Born?
• October Cryptocurrency Market Observation The table is set, the bull market feast is about to begin.

It is reported that FTX has received intentions from over 70 institutions, and Perella Weinberg LianGuairtners, the investment bank involved in the bidding process, stated that it has narrowed down to three candidate companies without revealing the specific list. The ultimate winner may be selected in mid-December and can relaunch the exchange after resolving the FTX bankruptcy matters next year. Other options being considered include selling the entire exchange, including a list of over 9 million customers, or introducing partners.

The latest disclosed institution participating in the acquisition, Proof Group, is headquartered in Silicon Valley and has invested in crypto startups such as Aptos Labs, Mysten Labs, and LightsLianGuairk. Proof Group is a part of the Fahrenheit consortium, which successfully bid for the bankrupt crypto lending firm Celsius. As part of the Celsius relaunch, Proof Group is establishing a pledging platform for the company. Noah Jessop, the founder and managing partner of Proof Group, is a former executive of crypto miner Core Scientific. Jessop has also served as a product manager for the Libra Association.

SEC Chairman Says Relaunch of FTX is Possible

Regarding reports that Tom Farley, former president of the New York Stock Exchange, is one of the three bidders to acquire FTX. Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), stated during Washington Fintech Week that there is a possibility of relaunching FTX if the new leadership has a clear understanding of the law.

Gary Gensler stated: “If Tom Farley or anyone else wants to enter the crypto field, I would say, ‘do it within the limits of the law.’ You need to build trust with investors for what you’re doing and make sure there’s appropriate disclosure, and also make sure you’re not commingling business and using customers’ digital assets for your own purposes.”

When FTX filed for bankruptcy a year ago, customer funds were transferred to the hedge fund Alameda Research. Alameda is the market maker for FTX exchange and has received privileges, including a $65 billion credit line without the need for collateral and the ability to have negative positions in its trading bets without liquidating its positions.

Gensler said, “We will never allow the New York Stock Exchange to operate hedge funds and trade with its members or trade with clients in the market,” considering the new regulations in the regulatory industry, the existing securities laws are “very robust and strong.” They just need to be enforced. “There is nothing in cryptocurrencies that violates securities laws. Currently, there are many participants worldwide who have not complied with these time-tested laws.”

50% Discount for Off-Exchange Purchase of “Non-performing Assets”

With many well-known institutions competing for acquisition and the voice of the Chairman of the US SEC, the likelihood of FTX restarting is increasing. Many communities have also begun to circulate that off-exchange purchases of FTX individuals’ asset claims are being made at a 50% discount, and it is rumored that FTX may pay a 50% compensation based on the price on the day of bankruptcy application on November 11, and a fee of around 5% is required.

Regarding the off-exchange trading form, the acquirer stated that the transaction will be based on factors such as whether the creditor belongs to an individual or a company, the number of accounts, whether there is a creditor ID, the net withdrawal quantity in the last ten days before the closure, etc. In addition to the 50% discount purchase, a fee of 5% will be charged, and the buyer will be sent a letter of intent and authorization letter.

After obtaining the client number of Kroll (FTX’s bankruptcy claim agent) and understanding the withdrawal and deposit situation in November, a price will be provided and a pricing confirmation letter will be sent. Once pricing is agreed upon, trading will begin. Trading requires the creditor’s claim proof, withdrawal, deposit, ID, address proof, and a short video call, etc. After completing this work, the final agreement will be sent, and once signed, the funds will be sent.

Affected by these news, according to CoinGecko data, FTX’s platform token FTT rose to $2.27 within 24 hours, with an increase of 80%.

Although the restart is expected, it is not an easy task. There are still many variables in the FTX bankruptcy case. Restarting must deal with aspects such as claims, token lock-up, and compliance issues, which is not a simple process. Thomas Braziel, bankruptcy expert and founder of 117 LianGuairtners, said that the bankrupt cryptocurrency lending institution Voyager attracted many hopeful bidders who wanted to restructure the company and provide tokens to creditors, but in the end, it was unsuccessful, which provides a precedent for the complexity of FTX’s restart.

Of course, in addition to restart, FTX is also considering other options, including selling the entire exchange and its list of over 9 million customers or introducing partners. Specifically, Perella Weinberg LianGuairtners, the investment bank responsible for handling FTX’s bankruptcy matters, said that FTX should make a decision before mid-December.

It is worth noting that FTX is actively selling assets. On November 6th, FTX and its creditors filed an application with the Delaware Bankruptcy Court seeking approval to sell approximately $744 million worth of Grayscale and Bitwise Trust assets through an investment advisor. This is to prepare for the upcoming monetization distribution to creditors and allow FTX to quickly sell these trust assets at the appropriate time. In addition, by establishing a pricing committee, all stakeholders will have representation to alleviate the cost and delay required for individually selling each asset.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!