Investment Firm Proof Group Throws Hat into the Ring for FTX Relaunch
Amid the ongoing FTX bankruptcy saga, investment firm Proof Group emerges as a potential bidder, aiming to breathe new life into the defunct crypto exchange.
Proof Group, a notable player in the crypto sector, has emerged as one of the potential bidders aiming to revive the bankrupt crypto exchange FTX, according to Bloomberg.
As a member of the Fahrenheit consortium, which includes entities like hedge fund Arrington Capital, Proof Group’s prior acquisition of assets from the defunct crypto lender Celsius in May underscores its proficiency in the crypto arena, potentially giving it a substantial advantage in the bid for FTX.
Evidence of active discussions between Proof Group and other potential investors has been mounting, suggesting a collaborative bid may be forming. Noah Jessop, the managing partner at Proof Group, boasts a distinguished career including advisory positions at Core Scientific, a blockchain mining company, and the Libra Association, known for Meta’s stablecoin initiative. Jessop, however, has not made any public statements regarding these negotiations.
Legal representatives engaged in FTX’s bankruptcy have acknowledged the review of several proposals concerning the exchange’s fate. Kevin Cofsky, a partner at Perella Weinberg Partners, disclosed an ongoing effort to evaluate various restructuring and capital market strategies for the FTX Group. Last month, he indicated an active search for parties interested in purchasing the exchange’s assets or partnering in its resurgence.
Cofsky also alluded to the possibility of a ‘stalking horse bid’ being presented by mid-December, a strategic move that could lead to an acquisition, a partnership-based relaunch, or an independent comeback for the exchange.
The backdrop of ex-FTX chief Sam Bankman-Fried’s recent conviction for customer and investor fraud, with a potential sentence of over 100 years, adds a dramatic twist to the proceedings. His sentencing is scheduled for March.
Nearly a year post-bankruptcy declaration, FTX has been actively working on asset recovery and restitution efforts, successfully reclaiming about $7 billion in assets, including cash and cryptocurrency, by September.
Moreover, FTX has initiated the transfer of certain crypto holdings to other exchanges such as Binance and Coinbase and is pursuing authorization to liquidate Trust assets held with BitWise and Grayscale.
Proof Group’s interest, a firm renowned for investing in groundbreaking financial technology, might herald a positive shift for FTX. Yet, with the bankruptcy drama ongoing, the final determination of FTX’s direction is highly anticipated by December.
