The investment firm Proof Group is said to be among the bidders expressing interest in revitalizing the bankrupt crypto exchange FTX, as per two individuals familiar with the situation.

Notably, the bankrupt exchange has received numerous bids for a potential restart, and it has now been narrowed down to a shortlist of three, according to Perella Weinberg Partners, an investment bank involved in the process.

Proof Group Eyes Potential FTX Revival

Proof Group has experience in the crypto sector and was previously involved in the Fahrenheit Group, a consortium of firms, including hedge fund Arrington Capital. The investment company successfully secured the winning bid to acquire the assets of the bankrupt crypto lender Celsius back in May. Proof Group is also a venture capital investor in crypto projects like Sui, Aptos, and Lightspark.

Noah Jessop, the managing partner of Proof Group, has a background that includes advisory roles at blockchain mining firm Core Scientific and a stint at the Libra Association, responsible for Meta’s stablecoin project, according to information from his LinkedIn profile.

FTX, at the time one of the largest crypto exchanges, collapsed almost a year ago, sending shockwaves through the industry. Kevin Cofsky, a partner at investment bank Perella Weinberg Partners, responsible for exploring restructuring and capital market opportunities for FTX Group, informed the court last month about the ongoing efforts. Lawyers overseeing the bankruptcy proceedings for FTX are evaluating various proposals to determine the next steps for the exchange.

Cofsky stated that they have been engaging in an outreach process with several interested parties to either acquire the legacy exchange assets or to partner with the debtors in connection with the launch of the platform. He also mentioned that they have been assessing this process about the potential for reorganizing the assets as a standalone entity.

Furthermore, Cofsky indicated that a stalking horse bid, which refers to an initial offer for the assets of a bankrupt company, is likely to be announced in mid-December.

FTX’s Relaunch Plans Amid SBF Case

In August, FTX unveiled a plan to relaunch the international crypto exchange, allowing creditors to consolidate their claims for its re-establishment. Notably, no compensation was proposed for FTT token holders, as the U.S. Securities and Exchange Commission has classified the token as an unregistered security.

In a significant development, Sam Bankman-Fried, the Founder and former CEO of FTX, was found guilty of seven counts of fraud, conspiracy, and money laundering after a five-week trial in New York. Bankman-Fried now faces the possibility of spending decades in prison, with his sentencing scheduled for March 28, 2024.