Venture capital firms have expressed an interest in injecting new capital into FTX, a defunct cryptocurrency exchange, to facilitate its reboot. San Francisco-based venture company, Tribe Capital, has proposed a fundraiser event to revive FTX with a target raise of $250 million.
The VC intends to bring in limited partners and pour in some of its own money, with the expanse of the investment around $100 million. The amount of capital required for restarting the exchange remains unknown, but it could be colossal given the fundraiser efforts and the recent recovery of $7.3 billion in cash and crypto assets, which is still not enough.
Tribe Capital’s relationship with FTX dates back to before the exchange’s Chapter 11 bankruptcy filing, and the VC had invested in the exchange while it was still under the leadership of former CEO Sam Bankman-Fried before the company imploded. The VC also holds investments with firms in the crypto playing field, including Binance US and Kraken, indicating the VC is a deep-pocketed investor. If the deal with defunct FTX formalizes, it could be a significant restart for the exchange.
FTX’s Official Committee of Unsecured Creditors (OCUC) has issued a statement concerning Tribe Capital’s proposed capital influx report, revealing an ongoing collaboration with debtors to evaluate every possible option that could see the exchange restart. The committee articulated that there was no clear timeframe for when the defunct exchange could resume operations or a possible sale. With this, the OCUC has called for interested investors and buyers to reach out to the debtors and the committee.
FTX token price (FTT) has reacted to the possibility of a platform reboot, surging over 20% as news about a possible reboot continues. Meanwhile, efforts to crack down on every celebrity that promoted or endorsed the since-shamed exchange continue, with former NBA star Shaquille O’Neal being the most recent victim, served outside his Atlanta home.
