Venture Capital Firm Tribe Capital Explores Injecting New Funds to Revive Bankrupt Crypto Exchange FTX
A San Francisco-based venture capital firm called Tribe Capital is reportedly considering injecting new funds into the bankrupt cryptocurrency exchange, FTX, to revive it.
Sources familiar with the matter say that Tribe Capital may lead a fundraising campaign worth $250 million, with $100 million coming from itself and its limited partners.
Tribe’s co-founder, Arjun Sethi, apparently met with FTX’s Committee of Unsecured Creditors in January to discuss the proposal.
The plan excludes a venture capital portfolio and crypto assets, but includes an estimated 9 million customer accounts, FTX US, FTX Australia, FTX Japan, FTX EU, FTX International, and LedgerX.
According to Cointelegraph, if successful, the revived exchange would retain the name FTX.
The Official Committee of Unsecured Creditors of FTX has confirmed that they are working with the Debtors to explore all options to reboot or sell the FTX exchanges and create value for creditors, but there is no definite timetable for a reboot or sale at this time.
During the FTX bankruptcy proceedings in January, Judge John Dorsey allowed the cryptocurrency exchange to sell some of its assets to repay its creditors.
The Delaware Bankruptcy Court filing reveals that the judge approved the sale of four crucial FTX units, including the derivatives platform LedgerX, the stock-trading platform Embed, and FTX’s regional arms, FTX Japan and FTX Europe.
On April 12, lawyers from Sullivan & Cromwell, who were representing FTX in the United States Bankruptcy Court for the District of Delaware, disclosed that the exchange had regained roughly $7.3 billion in liquid assets.