Tribe Capital considers reviving bankrupt crypto exchange FTX: Report

Tribe Capital, the San Francisco-based venture capital firm that previously invested in FTX before its collapse, is exploring the possibility of injecting new capital to revive the bankrupt cryptocurrency exchange, Bloomberg reported on April 18.

The venture capital firm is reportedly contemplating leading a $250 million fundraising campaign, anchored by $100 million from itself and its limited partners. According to Bloomberg, sources familiar with the matter say that Tribe co-founder, Arjun Sethi, met with FTX's Committee of Unsecured Creditors in January to discuss the informal proposal.

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 a venture capital portfolio and crypto assets, among others.” If the reboot plan is successful, the revived exchange will retain the name FTX.

On April 18, the Official Committee of Unsecured Creditors of FTX took to Twitter to confirm that “The Committee is working with the Debtors to evaluate all options to reboot or sell the FTX exchanges and create value for creditors.” However, the committee added, "There is no definitive timetable for a reboot or sale of the exchanges at this time.”

The Committee is working with the Debtors to evaluate all options to reboot or sell the FTX exchanges and create value for creditors.

— Official Committee of Unsecured Creditors of FTX (@FTX_Committee) April 18, 2023

Related: FTX’s bankruptcy lawyers and advisers pocket $32.5M in February

In January 2023, the judge overseeing the FTX bankruptcy proceedings gave the troubled crypto exchange approval to sell some of its assets to help repay its creditors. According to a filing in Delaware Bankruptcy Court, Judge John Dorsey approved the sale of four key units of FTX, which included derivatives platform LedgerX, stock-trading platform Embed and the exchange's regional arms, FTX Japan and FTX Europe.

On April 12, attorneys from Sullivan & Cromwell, who were representing FTX at a hearing in the United States Bankruptcy Court for the District of Delaware, stated that the exchange had recovered approximately $7.3 billion in liquid assets.

Magazine: Can you trust crypto exchanges after the collapse of FTX?