San Francisco-based venture capital firm Tribe Capital, which invested in FTX before its collapse, is exploring the possibility of injecting fresh capital to revive the bankrupt cryptocurrency exchange, Bloomberg reported on April 18.
The venture capital firm is reportedly considering leading a $250 million fundraising drive, with $100 million coming from itself and its limited partners. Tribe co-founder Arjun Sethi met with FTX’s committee of unsecured creditors in January to discuss the informal proposal, sources familiar with the matter said, according to Bloomberg. Bloomberg also reported that “Tribe’s proposal in January included an estimated 9 million customer accounts, FTX US, FTX Australia, FTX Japan, FTX EU, FTX International, and LedgerX, while excluding venture capital portfolios and crypto assets, among others.” If the restart plan is successful, the restored exchange will retain the name FTX.
On April 18, the official committee of FTX unsecured creditors confirmed on Twitter that “the committee is working with debtors to evaluate all options to restart or sell the FTX exchange and create value for creditors.” There is no clear timetable for restarting or selling the exchange.” In January, the judge overseeing FTX's bankruptcy proceedings approved the troubled cryptocurrency exchange to sell some of its assets to help repay creditors. According to a filing in Delaware bankruptcy court, Judge John Dorsey approved the sale of four of FTX’s main divisions derivatives platform LedgerX, stock trading platform Embed and the exchange’s regional affiliates FTX Japan and FTX Europe.
On April 12, lawyers representing FTX, Sullivan & Cromwell, said at a hearing in Delaware bankruptcy court that the exchange had recovered approximately $7.3 billion in liquid assets.
