It appears that the Tribe Capital co-founder started making moves on the revival proposal back in January.
Tribe Capital, an early-stage venture capital firm, is reportedly considering the revival of the now-bankrupt cryptocurrency exchange FTX by injecting new capital.
According to the Bloomberg report shared on April 18th, the San Francisco-based venture capital firm, which was an early investor in FTX, is contemplating launching a $250 million fundraising initiative. It is believed that the firm and its partners would devote $100 million to the fund.
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In its report, Bloomberg cited sources who claimed that in January, Tribe co-founder Arjun Sethi met with FTX's Committee of Unsecured Creditors to discuss the proposal.
According to the report, Tribe's proposal in January involved an estimated 9 million customer accounts and various FTX branches.
Tribe’s proposal in January included an estimated 9 million customer accounts, FTX US, FTX Australia, FTX Japan, FTX EU, FTX International and LedgerX, while excluding a venture capital portfolio and crypto assets, among others.
It is worth noting that if revitalized, the firm would continue to operate under the FTX name.
Soon after the Bloomberg report, the FTX Official Committee of Unsecured Creditors used Twitter to comment on the news. The Committee noted that they are "working with the Debtors to evaluate all options to reboot or sell the FTX exchanges and create value for creditors."
However, they added that "there is no definitive timetable for the reboot or sale of the exchanges at this time."
In January, the judge presiding over FTX's bankruptcy proceedings approved the sale of derivatives platform LedgerX, stock-trading platform Embed, and the exchange's regional arms, FTX Japan and FTX Europe. During an April 12th hearing, FTX's legal representatives revealed that the crypto exchange had recovered roughly $7.3 billion in liquid assets.
While the future of FTX remains uncertain, Tribe Capital's potential involvement may offer a glimmer of hope for the bankrupt crypto exchange's revival.
