Celsius Winner Proof Group Emerges as Top Contender for FTX Relaunch, Insiders Reveal

"Proof Group Emerges as Contender to Revive FTX, Once Prominent Crypto Exchange, After Celsius Success"

Silicon Valley investment firm Proof Group, part of the Fahrenheit consortium that successfully bid for bankrupt cryptocurrency lender Celsius, is among the contenders to relaunch FTX, according to sources familiar with the matter. FTX, once one of the largest crypto exchanges, suffered a collapse almost a year ago, causing shockwaves throughout the industry. Since then, the bankrupt exchange has received multiple bids for a potential restart, with the shortlist now narrowed down to three candidates, according to investment bank Perella Weinberg Partners, which is involved in the process. The options being considered include selling the entire exchange along with its valuable customer list of 9 million users, or bringing in a partner. A decision is expected to be made by mid-December, as stated by Kevin Cofsky, a partner at Perella Weinberg, last month.

Proof Group is a venture capital investor in various crypto projects such as Aptos, Lightspark, and Sui. Other firms that have expressed interest in reviving FTX include fintech and digital assets firm Figure, which also bid for Celsius as part of the unsuccessful NovaWulf group. Venture capital investor Tribe Capital has also reportedly submitted a bid for FTX. The FTX bankruptcy process involves numerous complexities, including addressing claims, token lockups, and compliance issues. Restarting the exchange is not a straightforward task. Bankrupt crypto lender Voyager faced a similar situation, attracting several hopeful bidders looking to restructure the firm and offer tokens to creditors, but ultimately failing to revive the business. This serves as a case study on the challenges involved in reboot plans, according to bankruptcy expert Thomas Braziel, founder of 117 Partners.

In conclusion, Proof Group, a Silicon Valley investment firm, is in the running to relaunch FTX, a cryptocurrency exchange that collapsed almost a year ago. The bankruptcy process has attracted multiple bids, with the shortlist now narrowed down to three candidates. Other firms, including Figure and Tribe Capital, have also shown interest in reviving FTX. However, the process is complex and involves addressing various issues such as claims, token lockups, and compliance. The decision on the future of FTX is expected to be made by mid-December.

Martin Reid

Martin Reid

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