Bill Gates points out what the next great technological revolution will be
Crypto Trends & News

The bid to revive FTX, the disgraced cryptocurrency empire

A large list of investors is behind the relaunch of the FTX crypto exchange, which fell into bankruptcy a year ago, and its founder, Sam Bankman-Fried, will be convicted of fraud.

The crypto asset platform FTX, which at its peak was valued at US$32 billion and was a direct competitor to giants like Binance, could be reborn from the ashes after its final traffic in 2022.

Last year, a string of collapses of other exchanges, such as TerraUSD or Celsius, sowed uncertainty in the crypto market, and the echo of their fall ended up affecting FTX, which declared bankruptcy at the end of 2022. The authorities froze the assets of FTX, and its CEO, Sam Bankman-Fried, announced his resignation. Subsequently, investigations by the United States Department of Justice concluded that Bankman-Fried should be charged with fraud for having deceived investors and misused funds belonging to clients of FTX and its subsidiary, Alameda Research.

“He was orchestrating a massive fraud for years, diverting billions of dollars of the trading platform’s customer funds for his benefit and to grow his crypto empire,” US prosecutors said.

The trial against Bankman-Fried took place last Thursday, November 2, 2023, and he was found guilty of seven crimes, including investment fraud and money laundering. The young man faces a sentence of up to 20 years in prison for each of the most serious charges. The sentence will be known in March.

Despite the dark future that awaits FTX and the loss of trust among its investors; several investors are behind the return of this crypto asset platform.

The Relaunch of FTX

As Bloomberg reported, the investment firm Proof Group is one of the many investors seeking to relaunch FTX. Proof Group is part of the Fahrenheit consortium, a conglomerate of cryptocurrency companies that recently acquired Celsius Network, a crypto exchange that went bankrupt in 2022. Its next step, according to experts in the field, would be to revive FTX.

This investment firm would have already made an offer, which was confirmed by specialized media. The plan to relaunch FTX could become a reality in 2024, which would be a new boost for a market that, except for its leaders, has been much muted since the end of 2022. Based in Silicon Valley, Proof Group is an investor in cryptocurrency startups such as Aptos Labs, Mysten Labs, and Lightspark, according to the company’s website.

According to Bloomberg, FTX currently has three offers to return to the crypto market.

In any case, considering the hits and misses, you might already be aware that the crypto market is subject to variation, and therefore price swings are bound to take place all of a sudden. Such is the case of currencies like Bitcoin, which in December 2022 reached its lowest point in two years due to the echoes of the FTX collapse. In November of this year, almost a year after Sam Bankman-Fried fell from grace, Bitcoin recovered and surpassed $30,000.

For an article based on the collapse of the crypto business operated by the crypto king Sam Bankman-Fried, you would want to consider reading the article we recently posted on our website. Check it now. Meanwhile, you will like to explore other interesting articles we have posted on this website.

    Leave a Reply

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