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 New York Jurors took 4 fours of deliberating before pronouncing the former FTX CEO guilty of all seven charges of fraud and conspiracy to commit fraud.
- Bankman-Fried will now have to appear in court on 28 March, 2024, where he will face a potential maximum sentence of 115 years in prison.
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 little over $13 million in altcoins were sent to crypto exchanges Binance and Coinbase in the past 24 hours, which is in accordance with a September court order.
- The court ordered a phased liquidation process, which allows the bankruptcy estate to sell $3.4 billion worth of digital assets over a certain period of time.
- Joseph Pimbley, a member of litigation consulting firm PF2 Securities, will try to rebuff testimonies from Caroline Ellison, Gary Wang, Nishad Singh, and Adam Yedidia.
- During his testimony Pimbley will try to establish a timeline for the FTX-Alameda line of credit, and convince the jury it fluctuated between $1 billion and $3 billion between 2021 and 2022.