The relaunch of crypto exchange FTX
The FTX crypto exchange, which collapsed in November 2022, may be partially relaunched Tribal capitalan American venture capital firm, invest 250 million dollars into it, which is in the plans. Full detail below.
Tribe Capital’s plan for the FTX crypto exchange
As expected, Tribe Capital is considering injecting capital into the FTX crypto exchange to potentially relaunch it. If this idea succeeds, Tribe Capital will conduct a fundraising campaign of $250 million, of which 100 million dollars would come from its own portfolio and the partners’ funds.
According to Bloomberg, co-founder of Tribe Capital Arjun Sethi met FTX’s creditors’ committee in January and it was at that meeting that he proposed to the committee 9 million customer accounts across FTX’s various internationally operating subsidiaries.
As one would expect, the price of FTX’s original token, FTT, reacted positively to the news, but apparently only at first. Also, it is worth noting that Tribe Capital, with its 1.6 billion dollars in assets under management across the entire business, had previously invested in FTX and FTX.US, the American part of the exchange.
More specifically, Tribe Capital had previously invested 2.6% of its capital in FTX. In any case, the company appears to be very crypto-friendly, as it has also invested in major cryptocurrency companies such as Kraken and Polygon Labs.
Can the FTX crypto exchange be restarted?
As we know, there were rumors in January that the crypto exchange FTX, after its implosion in November, may be relaunched in total. However, the creditors’ committee clarified that no timetable has yet been set for this.
Moreover, via its Twitter account, the committee said that potential interested parties should contact them, as noted:
According to the latest sources, it is known that John Ray IIIthe current CEO of FTX after Sam Bankman-Fried, is expected to decide whether to restart FTX by the second quarter of this year.
Last week, an FTX lawyer indicated that this idea was still in its infancy and that, if it were to come to fruition, it would require a huge influx of money.
In addition, John Ray III had specifically stated that FTX’s relaunch could assist in proceedings aimed at reimbursing customers harmed by the exchange’s failure.
But given the extent of the damage that Sam Bankman-Fried has quit the cryptocurrency ecosystem, it remains to be seen if anyone would really be willing to get the cryptocurrency exchange up and running again.
Refunds are forthcoming for FTX’s European customers
As is known, the customers in Europe and beyond are of FTX, issuer of FTT token, was hit hard financially when the stock exchange filed for bankruptcy last November.
Before its collapse, FTX was known for its approach to trading, offering a range of innovative financial products well received by traders worldwide. However, the sudden collapse of the stock market left many in a difficult situation, unsure if they would ever be able to get their money back.
Now the delicate situation seems to see a light at the end of the tunnel. In fact, in a statement, the Italian securities regulator, Consobannounced the launch of a website where users will be able to view their account balances and request one refund of what they owe.
As a reminder, Consob does not have jurisdiction in this case, as this is added CySec, the authority in Cyprus where FTX has its European headquarters. However, Consob’s decision to launch the website is a step in the right direction and could pave the way for other European regulators to follow suit.
However, while the launch of the website is a positive development for FTX’s European customers, it is important to note that it is only the first step in the process of getting their money back and is not a permanent solution.
According to reports, to proceed with a refund, merchants must provide proof of their account balance, then go through a verification process, and only then will they get their money back.
As can be expected, the process can also take quite a long time, as there will likely be a significant number of refund requests to process.
