The Fahrenheit Consortium’s Proof Group wants to rebuild FTX, the cryptocurrency exchange that crashed almost a year ago.
Renowned investment firm Proof Group in Silicon Valley is putting in a bid to revive FTX, the cryptocurrency exchange that caused a stir in the market when it crashed almost a year ago. A member of the Fahrenheit Consortium, Proof Group was successful in their effort to purchase the assets of the bankrupt cryptocurrency lender Celsius.
Right now, three possible solutions are being thought upon. Leading the charge in the endeavour to restart FTX is Proof Group, working with other interested parties. This is in line with a Coindesk report that quoted sources with knowledge of the situation.
Haste to Restart FTX
The resuscitation of FTX is an intricate process that is being investigated from several angles. Selling the exchange as a whole and moving its nine million users is one alternative. As an alternative, a collaboration might be formed to get the cryptocurrency exchange back online. It is expected that FTX’s destiny will be decided by mid-December.
Not just Proof Group is keeping an eye on FTX’s comeback. Those interested in reviving FTX include fintech and Figure, a digital assets company that was a part of the NovaWulf group and previously made a bid for Celsius. Furthermore, a venture capital investor named Tribe Capital has made a proposal.
FTX’s Resurrection and Regulatory Obstacles
FTX formally launched its proposal to revive the global cryptocurrency exchange in August. By working together, creditors can combine their claims for the re-establishment. It’s important to note, nevertheless, that no payment was suggested for owners of FTT tokens. According to the US Securities and Exchange Commission, the token is not registered as a securities.
After a five-week trial in New York last week, Sam Bankman-Fried, the founder and former CEO of FTX, was found guilty on seven counts of fraud, conspiracy, and money laundering. Bankman-Fried’s sentencing is set for March 28, 2024, and he now risks decades behind bars.
The US Attorney, Damian Williams, referred to Bankman-Fried’s acts outside of court as one of the biggest financial scams in American history. The lawyer for Bankman-Fried has indicated that they plan to file an appeal notwithstanding the guilty judgement.
