Arush Sehgal claims three well-funded finalists were prepared to acquire and relaunch FTX before the estate shut the process down
The post Arush Sehgal claims three well-funded finalists were prepared to acquire and relaunch FTX before the estate shut the process down appeared com. Arush Sehgal, a former member of FTX’s unsecured creditors’ committee (UCC), has delivered a blistering critique of the legal team that oversaw FTX’s bankruptcy, accusing them of derailing a revival plan that could have returned “tens of billions” of dollars to creditors. Sehgal, the Head of Crypto at Alpaca, made the allegations in a detailed post on X while quoting Kraken chief executive officer Arjun Sethi’s announcement that the exchange had raised $800 million at a $20 billion valuation. An account linked to the convicted founder of the defunct FTX exchange reposted Sehgal’s post. Three well-funded bidders left empty-handed According to Sehgal, he resigned from the UCC to work on a bid for FTX 2. 0 alongside Sethi and Tribe Capital, wrongly assuming the bankruptcy lawyers intended to allow the sale to proceed. He wrote, “Contrary to Andrew Dieterich’s lies about nobody wanting to buy FTX2. 0, there were 3 credible and well-funded finalists in the sale process.” Seghal said the three finalists were the Sethi-Tribe consortium backed by an undisclosed public exchange, Bullish led by Thomas Farley, and Figure headed by Mike Cagney. Since then, Bullish has gone public at a $6 billion valuation and is now worth $9 billion, while Figure completed its IPO at $5 billion and is valued at $8 billion, and Sethi “is now IPO’ing Kraken,” according to Seghal. When FTX was considering relaunching the platform following its famed crash, it reportedly reached out to more than 75 bidders starting in May 2023. “Each of these offers had significant equity components on the table that would have added tens of billions in value to all FTX creditors holdings but the lawyers killed the deal,” Seghal wrote in his post on X. “This was as much of a surprise to us as the general public and creditors given.