Tribe Capital, an established VC company launched back in 2018, is reportedly leading an investment round worth $250 million in order to assist FTX with re-establishing its virtual currency exchange.
The latest move comes after the firm had filed for bankruptcy and the new CEO, John J. Ray III, revealed that a reboot was actually being considered.
It’s worth noting that Tribe Capital has previously made investments in FTX as well as http://FTX.US.
It has also supported various other crypto firms such as Kraken during the past few years. The plan to relaunch FTX’s business operations has been under discussion after the original Chapter 11 bankruptcy filing back in November 2022. The plan also appeared to have gained some legitimacy when the current CEO revealed that he may be considering the reboot.
Despite these ongoing developments, some industry professionals think that FTX’s name has been tarnished for a successful reboot.
Notably, FTX’s demise has led to a lot of contagion across the nascent crypto sector.
Several crypto–related sectors have been affected, such as Barry Silbert’s Digital Currency Group, which might be able to sell its subsidiary Genesis. Though a potential sale process is in place as a result of the ongoing chapter 11 bankruptcy process, as of now no sale has been completed.
The transaction was part of an agreement with various creditors, among which the Gemini Trust is the most prominent.
Via its partnership with Genesis, the Winklevoss twins-supported Gemini has also been affected. In fact, the twins had to provide $100 million of their funds, which went into the crypto firm after they were not able to secure external funding.
Notably, The Block, a crypto-focused news outlet, had also gone through a leadership change after it was discovered that its former CEO had received funds from Sam Bankman-Fried, the founder and ex- CEO of FTX.
The potential relaunch of FTX has been a controversial topic, and Ray intends to arrive at a decision during the second quarter of 2023.