According to Bloomberg’s report on Tuesday, Tribe Capital is considering leading a $250 million fundraising effort to revive FTX, a failed crypto exchange, with $100 million of cash provided by Tribe and its limited partners. Arjun Sethi, the venture capital firm’s co-founder, met with FTX’s committee of unsecured creditors in January to discuss the informal proposal. San Francisco-based Tribe currently manages over $1.6 billion worth of assets and has previously invested in startups including FTX and its American partner site, FTX US, as well as crypto exchange Kraken and online checkout firm Bolt Payments.
The revived exchange would include around nine million customer accounts, FTX US, FTX Australia, FTX Japan, FTX EU, FTX International, and LedgerX, and continue to use the FTX name. FTX filed for bankruptcy in November after rival exchange Binance announced it would sell all of its holdings of the exchange’s native FTT token, leading to customers pulling their funds from FTX. FTX founder and CEO Sam Bankman-Fried was arrested in the Bahamas the following month and charged with eight counts of fraud. John Ray III, who was appointed as Bankman-Fried’s successor, will decide this quarter whether it’s viable to relaunch the exchange. Neither FTX nor Tribe Capital immediately responded to Insider’s requests for comment, made outside normal working hours.