In a recent report by FOX Business, it has been revealed that a company led by former New York Stock Exchange (NYSE) President Tom Farley is among three potential suitors vying to reboot the now-bankrupt cryptocurrency exchange, FTX. 

Bullish, the crypto exchange headed by Farley, fintech startup Figure Technologies, and crypto venture-capital firm Proof Group are competing to acquire the remnants of FTX as the auction for the collapsed exchange, founded by Sam Bankman-Fried, nears its final stages.

FTX Rebirth On The Horizon

Per the report, the prospective buyer of FTX may have the opportunity to restart the exchange following its planned exit from bankruptcy next year. 

Should a new owner take control of the exchange, there is a possibility that customers could receive shares in the rebooted exchange or new tradable tokens as partial compensation for their outstanding debts.

Approximately $9 billion of customer deposits on FTX remain unaccounted for. However, some industry observers caution that relaunching FTX may face challenges in gaining the trust of professional traders, given the exchange’s tainted history of fraud and embezzlement. 

As a result, discussions have occurred among potential bidders regarding rebranding the revived exchange by dropping the FTX name.

Former NYSE President’s Bullish Bid

Bullish, backed by notable investors such as Peter Thiel’s Founders Fund and hedge-fund manager Louis Bacon, is one of the contenders interested in acquiring the crypto company. 

Tom Farley, the former NYSE President who served from 2014 to 2018, leads Bullish. Figure Technologies, a startup co-founded by former SoFi CEO Mike Cagney, and Proof Group, part of the consortium that successfully bid for bankrupt crypto lender Celsius, are also in the running to purchase FTX.

The sales process for the exchange does not include the exchange’s real-estate portfolio in the Bahamas or other assets. The auction winner is expected to be announced in December, with the potential for a relaunched FTX to compensate customers through equity or tradable tokens. 

However, the challenge lies in rebuilding trust and credibility among professional traders who may harbor reservations due to FTX’s history.

FTX, once ranked as one of the world’s largest crypto exchanges, abruptly collapsed in November 2022 after a run on customer funds. Bankman-Fried, the founder of FTX, was subsequently charged with fraud, accused of misappropriating billions of dollars of customer funds for personal investments, luxury real estate, and political donations. 

As reported by Bitcoinist, last week, a New York federal jury convicted him on all seven counts, and he is set to be sentenced in March, facing a potential prison term of up to 115 years.

As the crypto industry closely monitors the outcome of the exchange auction, the involvement of a former NYSE President and prominent investors underscores the significance of this potential relaunch. 

Featured image from Shutterstock, chart from TradingView.com