Sun, February 25

Power Players Show Interest in FTX 2.0 Amid Crypto Exchange’s Revival Plan

Power Players Show Interest in FTX 2.0 Amid Crypto Exchange's Revival Plan Exchange News
  • FTX’s restructuring attracts 363 potential investors, including BlackRock and Nasdaq.
  • Traditional finance firms express interest amidst increasing crypto ventures.
  • Court upholds FTX customer privacy against major media outlets’ appeals.

In a dramatic turn of events, FTX, the embattled crypto exchange, has garnered interest from 363 potential investors, including heavyweights like BlackRock, Ripple Labs, and Nasdaq. This development comes as CEO John Ray III moves forward with restructuring plans. Further, these plans fall under the US Bankruptcy Code’s 363 Sale section, which permits the sale of a company’s assets during bankruptcy proceedings.

According to reports, the details of interested parties were released on June 22 by Alvarez & Marsal, FTX’s consultant. Other high-profile entities expressing interest include Tribe Capital, Robinhood, NYDIG, Galaxy Digital, and OKCoin. However, it’s crucial to note that this list is not exhaustive, and the sale process is expected to kick off later this year, with the eventual selection of a ‘stalking-horse bidder.’

FTX 2.0 Attracts Traditional Finance Amid Crypto Rush

Moreover, firms from traditional finance, often termed ‘TradFi,’ have expressed interest in the revamped FTX 2.0. As part of the revamp, the FTX team, led by Ray, is working on a bid process letter, onboarding market makers, and a relaunch of FTX Japan. 

Consequently, the potential investment in FTX 2.0 comes when a flurry of TradFi firms are entering the crypto space. Notably, BlackRock has filed for a spot Bitcoin ETF. Concurrently, JPMorgan is rolling out blockchain payments with JPM Coin, while EDX Markets—backed by Citadel Securities, Charles Schwab, and Fidelity Digital Assets—has kicked off crypto trading services.

On the same accord, the court’s verdict to uphold FTX customer privacy has met with resistance from four prominent media giants: Bloomberg, The New York Times, Dow Jones & Company, and The Financial Times. 

Arguing for the public’s right to knowledge, these organizations have challenged the court’s decision. Nevertheless, Judge John Dorsey stood firm on his ruling. He justified the need for confidentiality, underscoring the looming threats of identity theft and fraudulent activities.

As the dust settles on the initial announcements, the world watches with bated breath, curious to see the new avatar of FTX 2.0 and its impact on the ever-evolving landscape of cryptocurrency exchanges.

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