Media reports suggest that Jefferies, an investment company based on Wall Street, is considering purchasing FTX, a failing cryptocurrency exchange, and plans to return it to the forefront of the cryptocurrency industry.
With over 40 potential buyers expected to participate in the auction for the sale of assets of the exchange, Jefferies is exploring the potential of the cryptocurrency market and aims to expand its presence in the industry to further establish itself as a trusted advisor.
Following FTX’s collapse in November 2022, the founder, Sam Bankman-Fried, was indicted on eight felony charges by the US Attorney’s Office, to which he pleaded not guilty. Bankman-Fried was released on $250 million bail two weeks after the charges were filed.
The interim managers of FTX were only able to locate $2.7 billion of the $11.6 billion that should have been in client accounts, with part of the shortfall attributed to Alameda Research, which borrowed $9.3 billion from customer accounts before the crash.
Recent revelations indicate that the founders and key management employees of FTX received $3.2 billion in payments and loans, mostly from a subsidiary of Alameda Research.