VC firm Tribe Capital considers pouring new funds into insolvent FTX
- The San Francisco-based VC firm Tribe Capital is considering pouring new funds into the insolvent cryptocurrency exchange FTX.
- The firm had previously invested in FTX prior to its demise.
The San Francisco-based venture capital firm Tribe Capital, which previously invested in FTX prior to its demise, is considering pouring new funds into the insolvent cryptocurrency exchange.
As per a recent Bloomberg report, the VC firm is considering leading a $250 million fundraising drive, with $100 million coming from itself and its limited partners.
According to sources close to the situation, Tribe Capital co-founder Arjun Sethi met with FTX’s Committee of Unsecured Creditors in January to discuss the informal proposal.
Tribe’s January proposal consisted of an estimated 9 million user accounts, FTX US, FTX Australia, FTX Japan, FTX EU, FTX International, and LedgerX while excluding, among other things, a venture capital portfolio and crypto assets.
If the reboot plan succeeds, the revived exchange will continue to be known as FTX.
On 18 April, the Official Committee of FTX Unsecured Creditors confirmed on Twitter that the Committee is working with the debtors to investigate all alternatives for restarting or selling the FTX exchange and creating value for creditors.
The committee did note, though, that there is no definitive timetable for a reboot or sale of the exchanges at this time.
Customers still await their funds
The judge overseeing the FTX bankruptcy proceedings granted the ailing crypto exchange permission to sell some of its assets in order to repay its creditors in January.
According to a petition in Delaware Bankruptcy Court, Judge John Dorsey has approved the sale of four important FTX units, namely, the derivatives platform LedgerX, the stock trading platform Embed, and its regional units in Japan and Europe.
At a hearing in the United States Bankruptcy Court for the District of Delaware on 12 April, attorneys from Sullivan & Cromwell representing FTX indicated that the exchange had recovered about $7.3 billion in liquid assets.
FTX and its affiliated companies filed for bankruptcy in November 2022. Customers are still waiting for payments as bankruptcy processes continue.