Cofsky revealed that FTX is currently negotiating binding offers with the three bidders.
The bankrupt cryptocurrency exchange FTX is considering proposals from three potential buyers to restart trading on the platform. This was disclosed by FTX's investment banker, Kevin Cofsky of Perella Weinberg Partners, during a court hearing on Tuesday in Wilmington, Delaware.
Once one of the largest crypto exchanges globally, FTX filed for bankruptcy protection last year amid allegations of fraud and misuse of customer funds. Since then, FTX has been looking for ways to raise money to pay back creditors.
Cofsky revealed that FTX is currently negotiating binding offers with the three bidders. While he did not name the bidders, the options on the table include selling FTX entirely, bringing in a partner to relaunch the exchange, or rebooting the trading platform independently.
"We are engaging with multiple parties every day," Cofsky stated, adding that FTX aims to decide on the path forward by mid-December.
FTX's legal counsel Andrew Dietderich informed the court that FTX and its main creditor groups have tentatively settled some key disputes. This will allow the company to file a detailed repayment plan for creditors in December.
So far, administrators have recovered around $7 billion in FTX assets, including $3.4 billion in cryptocurrencies. However, the final creditor repayment percentages remain unclear, partly dependent on the value realized from selling or relaunching FTX.
FTX's founder Sam Bankman-Fried resigned last year and is currently facing criminal charges over allegedly misusing FTX customer funds. The debacle led to FTX halting trading and declaring bankruptcy.
The case continues in the US Bankruptcy Court for the District of Delaware.
