FTX's Second Chance: Silicon Valley's Proof Group Eyes Relaunch Plans

<p>Silicon Valley's Proof Group, a renowned investment
firm, is bidding to relaunch FTX, the crypto exchange that shook the industry
when it collapsed nearly a year ago. Proof Group is part of the Fahrenheit Consortium, which successfully bid to acquire the assets of the insolvent crypto
lender Celsius.</p><p>Currently, there are three potential options under
consideration. Proof Group, in collaboration with other interested parties,
is at the forefront of the efforts to relaunch FTX. This is according to a
report by Coindesk, which cited people familiar with the matter.</p><p>Race to Relaunch FTX</p><p>The revival of <a href="https://www.financemagnates.com/tag/ftx/" target="_blank" rel="follow">FTX</a> is a complex process with
multiple avenues being explored. One option involves selling the entire
exchange and transferring its nine million customers.
Alternatively, a partnership could be established to restart the crypto exchange.
The decision regarding FTX's future will reportedly be reached by
mid-December.</p><p>Proof Group is not the only player eyeing FTX's
resurgence. <a href="https://www.financemagnates.com/terms/f/fintech/">Fintech</a> and digital assets firm Figure, which previously bid for
Celsius as part of the NovaWulf group, is among those interested in reopening FTX. Additionally, Tribe Capital, a venture capital investor, has submitted
its bid.</p><p>FTX's Comeback and Regulatory Hurdles</p><p>In August, FTX officially unveiled a plan to <a href="https://www.financemagnates.com/cryptocurrency/ftx-officially-floats-plan-to-restart-international-crypto-exchange/">restart the international crypto exchange</a>. This strategy allows creditors to join
forces and pool their claims for the re-establishment. However, it's worth noting that
no compensation was proposed for FTT token holders. The US Securities and
<a href="https://www.financemagnates.com/terms/e/exchange/">Exchange</a> Commission has classified the token as an unregistered security.
</p><p>Meanwhile, Sam Bankman-Fried, the Founder and former
CEO of FTX, was <a href="https://www.financemagnates.com/cryptocurrency/ftx-trial-sam-bankman-fried-found-guilty-of-all-7-criminal-charges/" target="_blank" rel="follow">found guilty of seven counts of fraud</a>, conspiracy, and
money laundering following a five-week trial in New York last week.
Bankman-Fried now faces decades in prison, with his sentencing scheduled for
March 28, 2024.</p><p>US Attorney Damian Williams, outside the courtroom,
labeled Bankman-Fried's actions as one of the most significant financial
frauds in American history. Despite the guilty verdict, Bankman-Fried's
attorney has signaled an intention to appeal.</p>

This article was written by Jared Kirui at www.financemagnates.com.