Tribe Capital Reportedly Considers Reviving FTX
- The venture capital firm, which invested in FTX before its collapse, is reportedly exploring the possibility of injecting new capital to revive the bankrupt crypto exchange.
- Unnamed sourced noted that Tribe Capital was contemplating leading a $250 million fundraising campaign for FTX, to which it would commit $100 million.
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Venture capital firm Tribe Capital is exploring the possibility of launching a fundraising campaign in order to revive bankrupt cryptocurrency exchange FTX, Bloomberg reported on 18 April.
The publication cited “people familiar with the matter”, who said that Tribe Capital co-founder Arjun Sethi had met with FTX’s committee of unsecured creditors back in January in order to discuss a possible revival of the exchange. The unnamed sources revealed that the VC firm is considering leading a $250 million fundraising campaign, to which it would commit $100 million from itself and its limited partners.
Shortly after Bloomberg’s article, the committee that represents FTX’s creditors said via Twitter that it is exploring all options that would “create value for creditors”, and that reviving the exchange was one of them. The committee, however, noted that there was “no definitive timetable for a reboot or sale of the exchange” at this time, and that interested parties should contact the debtors.
The idea of restarting FTX was first floated by its new CEO John J. Ray III back in January, when he told the Wall Street Journal that a reboot could potentially recover more value for the company’s customers than liquidating its assets. While unverified, Bloomberg’s article caused a jump in the price of FTX’s FTT token, which saw a 261% increase in its trading volume over the past 24 hours.
- The U.S. Department of Justice has expressed its concerns over Sam Bankman-Fried’s seven expert witnesses, and requested they be barred from testifying on the case.
- The DoJ claimed most of the proposed experts lacked the necessary foundation for their opinions, making them unqualified to be an expert witness.
Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York after pleading not guilty, 3 January, 2022.
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- A cyber security incident at bankruptcy service provider Kroll has resulted in the exposure of “non-sensitive” customer data for claimants involved in the FTX and BlockFi cases.
- Both companies confirmed that account passwords, systems, and funds remained safe, but warned customers to be on the lookout for phishing scams.
- The bankrupt crypto lender has agreed on a settlement with its Series B holders on how to distribute the $25 million from the sale of self-custody platform GK8.
- The majority of funds, $24 million, will be allocated for legal expenses, while the remaining $1 million will be distributed between the Series B holders.