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.