FTX is weighing whether to reorganize the crypto exchange with a partner, on its own, or to find a buyer. Lawyers for the platform, which is proceeding through bankruptcy proceedings, told the judge, Bloomberg reports.
“I now know that there are at least three parties interested in buying the asset, the platform,” said the latter.
According to Kevin Coffey, a partner at Perella Weinberg Partners who is overseeing the process, an initial offer for the company could surface on December 16. The exchange is considering multiple options, he added.
“We are participating in a daily coordination process with a number of interested parties,” the specialist explained.
There is also discussion about whether to retain redacted personal information about users.
“Immediate disclosure of the names of institutional debtor clients would undermine value and damage ongoing efforts to monetise their assets,” the lawyers said in a September filing.
The corresponding list was sealed. Some participants, citing the bankruptcy’s priority, and media outlets asserted that it should be made public, the agency noted.
The judge approved an order to redact client information for the next 90 days.
In a March presentation, exchange officials estimated the total shortfall to cover creditors’ claims at $8.7 billion, of which about $1.6 billion was in Bitcoin. In June 2023, the platform’s current management team said it had recovered liquid assets totalling about $7 billion.
In May, FTX filed a suit against Genesis seeking the return of $3.9 billion. Subsequently, the total claims were pared back to $2 billion. Ultimately, the companies agreed to pay $175 million to Alameda Research.
In July, lawyers sought the return of $71 million from charity divisions affiliated with the exchange.
In September, the court approved Robinhood’s repurchase of its 55 million shares worth $605.7 million, which had previously belonged to the platform’s founder, Sam Bankman-Fried.
In the same month, FTX filed suit against LayerZero demanding the return of $86 million.
Subsequently the exchange lodged claims against employees of its Hong Kong subsidiary for $157.3 million.
In October, creditors’ representatives and the platform’s management approved a plan under which FTX clients could expect $9.2 billion by mid-2024. The arrangements require court approval. Management at FTX must file the corresponding application by December 16.
Recently, the value of the claims against the exchange reached 52 cents on the dollar.