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The remains of FTX, the crypto exchange that went bankrupt, are attracting interest from several potential buyers. One of them is a company owned by Tom Farley, the former chairman of the New York Stock Exchange (NYSE), according to a report by The Wall Street Journal on Wednesday, citing sources familiar with the matter.
FTX Nears Sale As Three Bidders Emerge
The auction for FTX, the crypto exchange founded by Sam Bankman-Fried that collapsed, is nearing its end. Three bidders are in the race to acquire the exchange and relaunch it after it exits bankruptcy next year. They are Bullish, a crypto exchange led by Tom Farley, the former president of the New York Stock Exchange (NYSE), Figure Technologies, a fintech startup, and Proof Group, a crypto venture-capital firm.
FTX received interest from more than 70 parties and shortlisted three of them, as a banker advising FTX said at a hearing last month, without revealing their names. The winner could be announced in December. The identity of Bullish was previously reported, while the other two are new. The deal is not certain and there could be another bidder.
FTX announced a plan in August to revive the global crypto exchange, giving creditors a chance to merge their claims for its reactivation. However, the plan did not offer any compensation for FTT token holders, as the FTT token was deemed an illegal security by the U.S. Securities and Exchange Commission.
Some buyers may not want the FTX brand for the new crypto exchange. The attorney said that FTX’s 9 million customers are very valuable. One option is to sell them to another exchange and drop the FTX brand.
But the buyer must know how many customers are unique and it needs to compare the databases without revealing anyone’s identity.
SBF Will Likely Seek A Review
FTX was a huge crypto exchange until it failed in November 2022. Last week, Bankman-Fried, its founder, was found guilty of stealing customer funds and spending them on lavish things. He now faces up to 110 years in jail.
However, Judge Kaplan rejected Bankman-Fried’s lawyers’ request for acquittal, saying the prosecution had enough evidence. After Bankman-Fried was convicted, his lawyer, Mark Cohen, said his client would keep fighting the charges.
Bankman-Fried will be sentenced on March 28, 2024 by US District Judge Lewis Kaplan. The sentence will depend on various factors, such as Bankman-Fried’s history and the details of the crime.
Kaplan denied Bankman-Fried’s request to be freed from custody to prepare for trial, suggesting that he might face a “very long sentence.”
Bankman-Fried still has to face another trial in March for the prosecution’s case against him. He is accused of bribing Chinese officials with $40 million and making over 300 illegal political donations in the US.