Tribe Capital Considering Sponsorship for FTX’s Recovery Strategy (Report)

Tribe Capital, a venture capital firm located in San Francisco, is reportedly contemplating spearheading a $250 million fundraising effort that could assist the bankrupt cryptocurrency exchange FTX in regaining stability.

• As per a Bloomberg report, Arjun Sethi, co-founder of Tribe Capital, engaged with FTX’s committee of unsecured creditors to deliberate on the multi-million dollar initiative.

“Tribe is contemplating leading a $250 million fundraising effort, supported by $100 million from itself and its limited partners,” stated an individual familiar with the situation.

• FTX’s committee of unsecured creditors acknowledged that it is “collaborating with the debtors to assess all possibilities for rebooting or selling the FTX exchanges.” However, they noted that “there’s no definitive timetable” for a revival or sale of the platforms at this moment.
• The native token FTT experienced a 20% increase shortly after the announcement, reaching nearly $2.30. However, it retraced in the subsequent hours.
• The former cryptocurrency powerhouse, led by Sam Bankman-Fried, filed for bankruptcy protection in November of the previous year after disclosing significant liquidity issues and failing to fulfill customer withdrawal requests.
• This incident was one of the most challenging moments in the cryptocurrency sector throughout 2022, as FTX was a prominent player in the industry and was once valued at over $30 billion.
• Its collapse led to devastating losses for numerous investors.
• Recently, attorneys and bankruptcy specialists recovered more than $7 billion in assets owed to clients and suggested the possibility of a comeback.

SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.