Tribe Capital, a VC ready to contribute to FTX’s rebirth?

Already a shareholder of FTX before its bankruptcy, Tribe Capital would be interested in a capital contribution to the crypto exchange. The VC could go as far as investing 100 million dollars as part of a 250M raise.

In court, lawyers representing FTX mentioned several future scenarios for the exchange. Among them, a return of the platform financed by equity or fresh capital.

The unsecured creditors’ committee is considering this option. In January, an investment firm also discussed this informal proposal with members of that committee. According to Bloomberg, Tribe Capital would have some interest in this hypothesis.

Read:  Binance renounces Abu Dhabi license and keeps headquarters secret

Tribe, ex-shareholder of FTX and FTX US

The VC founded in 2018 is familiar with FTX. Indeed, the company had invested in both FTX and its US arm FTX US. Despite – or because of – a steep loss, Tribe Capital is reportedly considering a 250 million round of financing.

In such a deal, the firm, which manages $1.6 billion in assets, would be willing to contribute 100 million dollarsreports Bloomberg citing sources close to the matter. Remember that Tribe Capital also has stakes in Kraken and tech startups, including Bolt.

The re-marketing of the former crypto exchange is not yet decided. A Creditor repayment plan must first be finalized. FTX’s new management has until September 7 to file it.

FTX CEO expected to decide future in Q2

John Ray III, the firm’s current CEO, is reportedly planning to decide the question of a relaunch and its feasibility during the second quarter. But according to Andrew G. Dietderich, FTX’s lawyer, this process has barely begun.

Read:  Crypto exchange Bybit wants to set up shop in Hong Kong

The lawyer also noted that a substantial capital contribution would be necessary to make such a scenario credible. FTX does have over $7 billion in assets, but these funds are frozen.

That leaves the possibility of using third-party investors, players such as Tribe Capital. The proposal made to the VC mentioned 9 million customer accounts among the various subsidiaries of FTX, which would retain its brand.

No definitive timetable for a sale or restart

In any case, these prospects do not leave token holders indifferent FTTwhose value had melted away following the company’s bankruptcy. The share price has risen again following the publication of this new information.

At around 2 dollars, the token remains at a similar level to the one at the time of the mention in court of a possible restart last week. It also remains a far cry from where it was a year ago, at over $40.

The creditors’ committee also makes it clear that “there is no definitive timetable for a restart or sale of the exchanges at this time.

Follow Corners.en on Twitter, Linkedin, Facebook or Telegram to not miss anything.

The Best Online Bookmakers June 19 2024

BetMGM Casino

BetMGM Casino