The bankrupt crypto exchange FTX could be on its way to a revival as venture capital firm Tribe Capital considers investing $250 million to restart the platform. According to a Bloomberg report, Tribe Capital, an investor in Kraken, is evaluating the feasibility of a restart, with FTX’s new CEO John J. Ray III planning to make a decision in the second quarter.
Bloomberg says that Tribe Capital’s founder Arjun Sethi had an informal meeting with FTX‘s Committee of Unsecured Creditors back in January. Reportedly, Tribe is considering spearheading a $250 million fundraising event, with $100 million coming from the company and its limited partners as the campaign’s cornerstone.
Notably, Tribe Capital was a venture investor in both FTX and FTX US, the American entity. The San Francisco-based firm, with more than $1.6 billion under management, invests in various startups, including famous crypto platform Kraken, payments company Bolt, and e-commerce provider Shiprocket.
According to sources, Tribe’s proposal included nine 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 other things,.
FTX’s new CEO, John J. Ray III, aims to determine in the second quarter whether a restart is viable, according to a presentation in bankruptcy court. Notably, during a hearing on April 12, FTX attorney Andrew G. Dietderich said that the business is still in the preliminary phases of evaluating the plan and that its reconstruction would need a significant amount of cash, the majority of which would likely come from outside investors.
