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

Tribe Capital – a venture capital firm based in San Francisco – is reportedly considering leading a $250 million fundraising campaign that could help the bankrupt crypto exchange FTX get back on track. 

• According to a Bloomberg coverage, Tribe Capital’s co-founder – Arjun Sethi – met with FTX’s committee of unsecured creditors to discuss the multi-million initiative. 

“Tribe is considering leading a $250 million fundraising campaign, anchored by $100 million from itself and its limited partners,” a person familiar with the matter said. 

• FTX’s committee of unsecured creditors admitted it is “working with the debtors to evaluate all options to reboot or sell the FTX exchanges.” However, they said “there’s no definitive timetable” for a revival or sale of the platforms at this time.
• The native token FTT surged by 20% shortly after the report, tapping nearly $2.30. In the following hours, though, it retraced.
• The former crypto giant, led by Sam Bankman-Fried, filed for bankruptcy protection in November last year after revealing severe liquidity cracks and failing to honor customer withdrawal requests.
• The event was among the darkest in the world of crypto for the entire 2022 since FTX was among the leaders in its field and was once valued at over $30 billion.
• Its demise resulted in catastrophic losses for multiple investors.
• Attorneys and bankruptcy experts recovered more than $7 billion of assets owed to clients recently and hinted about a possible comeback.