Proof Group emerges as a contender to revive bankrupt FTX

Proof Group Potential Bidder for FTX Revival

The investment firm Proof Group is reportedly one of the bidders showing interest in revitalizing the bankrupt crypto exchange FTX, according to two individuals familiar with the situation. Perella Weinberg Partners, an investment bank involved in the process, has narrowed down the potential bidders to a shortlist of three.

Proof Group has previous experience in the crypto sector and was part of the Fahrenheit Group, which included hedge fund Arrington Capital. The investment company successfully secured the winning bid to acquire the assets of the bankrupt crypto lender Celsius back in May. Proof Group is also a venture capital investor in crypto projects like Sui, Aptos, and Lightspark.

Noah Jessop, the managing partner of Proof Group, has a background that includes advisory roles at blockchain mining firm Core Scientific and a stint at the Libra Association, responsible for Meta’s stablecoin project, according to information from his LinkedIn profile.

FTX, once one of the largest crypto exchanges, collapsed almost a year ago, prompting a flurry of bids for its potential restart. Kevin Cofsky, a partner at investment bank Perella Weinberg Partners, is responsible for exploring restructuring and capital market opportunities for FTX Group, and informed the court about the ongoing efforts. Lawyers overseeing the bankruptcy proceedings for FTX are evaluating various proposals to determine the next steps for the exchange.

Cofsky stated that they have been engaging in an outreach process with several interested parties to either acquire the legacy exchange assets or to partner with the debtors in connection with the launch of the platform. He also mentioned that they have been assessing this process about the potential for reorganizing the assets as a standalone entity.

Additionally, Cofsky indicated that a stalking horse bid, which refers to an initial offer for the assets of a bankrupt company, is likely to be announced in mid-December.

FTX’s Relaunch Plans Amid SBF Case

In August, FTX unveiled a plan to relaunch the international crypto exchange, allowing creditors to consolidate their claims for its re-establishment. Notably, no compensation was proposed for FTT token holders, as the U.S. Securities and Exchange Commission has classified the token as an unregistered security.

In a significant development, Sam Bankman-Fried, the Founder and former CEO of FTX, was found guilty of seven counts of fraud, conspiracy, and money laundering after a five-week trial in New York. Bankman-Fried now faces the possibility of spending decades in prison, with his sentencing scheduled for March 28, 2024.


Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

❗Follow us on Twitter to get all the latest crypto news as soon as they're out! 🚀

J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

View J-S Tremblay website

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top