Media: Tribe Capital Eyes Possible FTX Restart

A potential restart of the collapsed cryptocurrency exchange FTX has attracted interest from venture firm Tribe Capital. Bloomberg reports, citing sources.

Founded in 2018, Tribe Capital was one of the investors in the bankrupt trading platform.

According to the agency, in January 2023, co-founder Arjun Sethi met with the FTX Unsecured Creditors’ Committee to discuss a proposal to revive the exchange.

As part of the initiative, Tribe is weighing a $250 million raise. It has already secured $100 million of support from its parent company and its investors.

Following Bloomberg’s report, the FTX creditors’ committee said it was evaluating all options “to reboot or to sell the exchange and create value for creditors”.

The Committee is working with the Debtors to evaluate all options to reboot or sell the FTX exchanges and create value for creditors.

— Official Committee of Unsecured Creditors of FTX (@FTX_Committee) April 18, 2023

“Until an official process is launched, parties interested in purchasing or sponsoring a reboot of FTX should contact the debtors and the committee,” the creditors noted.

In early 2023, the platform’s then-CEO John Ray stated that a reboot was possible. According to him, a specially formed working group is examining whether a reboot could deliver more value to users than liquidating FTX’s assets.

Lawyers for the bankrupt promised to present to the court a plan to reorganize the exchange with a possible resumption of operations. Attorneys noted that the company has assets totaling $7.3 billion.

Former FTX chief Zane Takett also remains committed to the idea of a reboot. In his view, the exchange should fully resume operations and begin trading claims on the platform.