Tribe Capital Interested in Sponsoring FTX’s Revival Plan (Report)

Tribe Capital, a venture capital firm known for backing blockchain startups, is reportedly interested in sponsoring FTX’s revival plan. FTX, a cryptocurrency derivatives exchange, recently experienced a major sell-off and subsequent outage, causing significant losses for its users. The revival plan aims to mitigate the financial impact on FTX’s clients and restore the platform’s reputation. Tribe Capital’s potential sponsorship could provide much-needed support and resources for FTX as it moves forward with its recovery efforts.

Tribe Capital is exploring the possibility of leading a fundraising initiative worth $250 million to assist FTX, a crypto exchange that filed for bankruptcy protection in November 2021. According to Bloomberg, Arjun Sethi, the co-founder of Tribe Capital, met with FTX’s committee of unsecured creditors to discuss the proposal. A source familiar with the matter stated that the campaign could be anchored by $100 million from Tribe Capital and its limited partners. While FTX’s unsecured creditors committee admitted to working with the debtor to assess various options to restart or sell the FTX exchanges, no specific timeline has been provided for the exchange’s revival or sale.

Following the report, the native FTT token saw a 20% increase, reaching nearly $2.30. However, in the subsequent hours, it retraced. FTX was once valued at over $30 billion and was among the leaders in its field. Its bankruptcy was one of the most significant events in the crypto world in 2022 and resulted in enormous losses for multiple investors.

Bankruptcy experts recently recovered more than $7 billion in assets owed to clients and hinted at a potential FTX comeback. The attorneys and bankruptcy experts saw this as a positive signal for the crypto market, as the recuperation of the funds was a significant achievement that could prompt renewed investor confidence in the cryptocurrency sector.

Title 1: Tribe Capital Leading a $250 Million Fundraising Initiative for Bankrupt FTX Crypto Exchange

Title 2: Bankruptcy Experts Hail FTX’s Asset Recovery as Positive Signal for Crypto Market Revival

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