FTX Bankruptcy Auction: Bullish, Figure Technologies, and Proof Group as Top Bidders
Race to Acquire FTX Remnants
Bullish, Figure Technologies, and Proof Group are in a tight race to acquire the remains of the once-prominent cryptocurrency exchange FTX, currently in an ongoing auction. The competition between these three firms has insiders buzzing with excitement. FTX, founded by Sam Bankman-Fried, once held a significant market share. The successful bidder could potentially revive FTX post its planned exit from bankruptcy in 2024.
Post-Bankruptcy Auction
Following FTX’s bankruptcy and co-founder Sam Bankman-Fried’s fraud conviction, over 75 bidders have been approached. Bullish, led by ex-NYSE president Tom Farley, Figure Technologies, and Noah Jessop’s Proof Group have emerged as the finalists. The decision is expected to be made by December.
Crypto Market Surge
Amidst a surge in the crypto market, Bitcoin’s valuation has seen a significant increase from nearly $17,000 in January to about $35,000 this month. Centralized exchanges have experienced a 53% surge in trading volumes since September, reaching $2.57 trillion in October, encompassing both crypto derivatives and spot trading.
FTX’s Rise and Fall
FTX had reached a monumental valuation of $32 billion in January 2022. However, embezzlement by founder Sam Bankman-Fried led to the collapse of FTX and his subsequent conviction on all fraud charges in November 2022. An estimated $9 billion of customer deposits remain missing.
Industry Developments
In December 2022, Bullish backed out of a planned $9 billion public merger deal. In early 2023, Figure Technologies was unsuccessful in acquiring bankrupt crypto lender Celsius, while Proof Group emerged victorious in the Celsius auction.
Potential Market Surge
As the crypto industry anticipates a potential approval of a spot ETF, a similar market surge is expected, as witnessed between January and April 2021 when Bitcoin’s price soared from around $30,000 at the end of January to over $63,000 in April.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
