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- 1 It was recently reported that Proof Group, a member of Fahrenheit Consortium, is among the top bidders for FTX.
- 2 Proof Group is a member of the Fahrenheit consortium.
The bankrupt cryptocurrency exchange FTX is left with fewer options of relaunching via self or taking help outside. Until the last developments, the company attorney informed that three bidders were interested in the offer but did not disclose their names. Recently, a news outlet citing a person familiar with the matter reported that Proof Group, a member of Fahrenheit Consortium, is among the top bidders for FTX.
Bloomberg reported that the person, on the condition of not revealing their identity, stated that Proof Group reached out to other investors to look for potential partners to join the company in the bid to acquire FTX.
Earlier, TheCoinRepublic reported that during a court hearing in October, Kevin M. Cofsky, partner at investment bank Perella Weinberg Partners, who’s also looking for opportunities for FTX Group’s restructuring, informed that the decision could come out in December 2023.
In addition, he also told the Delaware court about negotiations going on with the investors for potential binding offers. He stated that there were three potential bidders while keeping the names secret.
Cofsky stated that they have been in discussions with various interested parties regarding the acquisition of legacy exchange assets or potential partnerships with the debtors for the launch of the exchange. They have been assessing this outreach process in terms of the possibility of reorganizing the assets independently.
Proof Group’s Interest in FTX
According to Bloomberg, Proof Group, an investment firm, has emerged as one of the contenders in the effort to revive the insolvent crypto exchange FTX, as confirmed by an individual with knowledge of the situation.
Additionally, Proof Group is a member of the Fahrenheit consortium, a collective of investors and cryptocurrency enterprises that successfully secured the acquisition of the assets of the defunct crypto lender Celsius Network. Fahrenheit’s endeavors are bolstered by support from Arrington Capital, a prominent crypto hedge fund.
FTX Ex-Boss Sam Bankman-Fried Proven Guilty
Sam Bankman-Fried, the co-founder and former CEO of the troubled crypto exchange firm FTX, was reportedly found “guilty” of multiple fraud and money laundering charges by a New York court jury.
On November 2, 2023, after an extended legal battle spanning several months, the jury reached its decision. The charges brought against him encompassed wire fraud against FTX customers, involvement in a conspiracy to commit securities fraud, and money laundering. This represents a pivotal moment in one of the cryptocurrency industry’s prominent legal cases.
According to United States Attorney Damian Williams, the fraudulent activities that transpired at FTX constitute “one of the most significant financial frauds in American history.” Williams stressed that despite the cryptocurrency sector’s relative novelty, there is no tolerance for fraud and misconduct within it.
At the jury’s conclusive ruling, Bankman-Fried maintained a composed demeanor, while his parents displayed despondency. Mark Cohen, his attorney, conveyed his dissatisfaction with the verdict, affirming that Bankman-Fried steadfastly proclaims his innocence and will persist in resolutely contesting the charges.
The period preceding this verdict was characterized by considerable upheaval in the cryptocurrency exchange sector. This turmoil encompassed FTX’s liquidity crisis and accusations of asset misappropriation.
Sam Bankman-Fried, the founder of FTX, faced arrest in the Bahamas, followed by extradition to the United States. He was subsequently released on a record-setting $250 million bond in December. Notably, three former associates of Bankman-Fried had already confessed to fraud charges and concurred to collaborate with ongoing investigations.
The trial, which began on October 3, ultimately saw Bankman-Fried found guilty on all seven charges, rejecting his claims of innocence. This marks a crucial development in the ongoing saga of troubles in the world of cryptocurrency exchanges.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
