FTX Reboot Plan Attracts Interest From VC Firm Tribe Capital: Report

The FTT exchange token is up 17% on the news.

AccessTimeIconApr 18, 2023 at 5:20 p.m. UTC
Updated Apr 19, 2023 at 2:29 p.m. UTC

Bankrupt crypto exchange FTX's plan to restart operations has drawn a bid from venture capital firm Tribe Capital, Bloomberg reported on Tuesday, citing people familiar with the matter.

Tribe, whose portfolio included FTX ahead of its dramatic collapse in November, is considering leading a $250 million fund raise, with a $100 million commitment from itself, according to the report. A source told Bloomberg that Tribe Capital co-founder Arjun Sethi met with FTX’s official committee of unsecured creditors in January to go over an informal proposal.

"The Committee is working with the Debtors to evaluate all options to reboot or sell the FTX exchanges and create value for creditors," FTX creditors' committee tweeted on Tuesday, adding that there isn't a set timeline for a reboot or sale at this time.

John J. Ray III, the current chief of FTX, told the Wall Street Journal in January that the estate is exploring restarting the crypto exchange – something the firm's attorneys repeated earlier this month.

"Until a formal process is launched, parties interested in purchasing or sponsoring a reboot of the FTX exchanges should contact the Debtors and the Committee," the creditors' committee tweeted.

FTX's exchange token FTT jumped as much as 23% on news of the Tribe Capital bid, and was higher by 17% at press time.

Tribe Capital and FTX debtors declined to comment on the matter.

Update (April 19, 08:18 UTC): Adds response from FTX in last paragraph.

Update (April 19, 14:29 UTC): Adds response from Tribe Capital.

Edited by Stephen Alpher.


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