Tribe Capital, a venture capital firm, is considering providing a substantial amount of funding to revive FTX, the cryptocurrency exchange that has gone bankrupt, according to the reports.
As it considers options to restart or sell the FTX exchanges and maximize value for creditors, the company is considering spearheading a $250 million fundraising effort, with $100 million coming from itself and its limited partners as the campaign’s cornerstone.
FTX may rise again
Tribe Capital is considering a new cash infusion. This venture capital firm previously invested in FTX to aid in reviving the cryptocurrency exchange, which filed for bankruptcy in November.
According to reports, Tribe is thinking of leading a $250 million fundraising effort, with $100 million coming from it and its limited partners.
Tribe, established in 2018, invested in the international and American branches of FTX. The San Francisco-based company, which has more than $1.6 billion under management, invests in several businesses, including the cryptocurrency platform Kraken, the payments company Bolt, and the e-commerce provider Shiprocket.
When FTX, a once-vibrant digital asset empire, filed for bankruptcy, it left creditors with at least $11.6 billion in claims, which shook the market as a whole. The exchange’s founder, Sam Bankman-Fried, will go on trial on fraud charges and breaking political funding laws in October.
In the second quarter, John J. Ray III, the new CEO of FTX, is anticipated to decide the viability of a restart. According to FTX lawyer Andrew G. Dietderich, the corporation is still considering the proposal, and a relaunch would need a large capital infusion, maybe from outside investors.
About 9 million client accounts and various FTX businesses were included in Tribe’s January plan, but assets like the venture capital portfolio and specific crypto assets were not. The new exchange would retain the FTX moniker.
Significant regulatory and compliance barriers exist to restarting FTX, and it is unclear when this will be possible.
The FTX creditors’ committee tweeted that they are working with the debtors to investigate all options for resuming or selling the FTX exchanges to create value for creditors. The committee invited anyone with questions or concerns about the process to contact the debtors and the committee.
The revelation of Tribe Capital’s prospective involvement in the resurrection of the exchange resulted in a 17% surge in FTT, the exchange token for FTX.