FTX’s list of around nine million clients is “extraordinarily valuable” and could hurt the crypto exchange’s sale value if made publichas argued a member of the FTX restructuring team.
In a court hearing published on June 8, Kevin Cofsky, a partner at investment bank Parella Weinberg hired by FTX, said that It “would be detrimental” to FTX’s restructuring efforts for competitors to learn of the exchange’s customers.
Cofsky is part of the team that intends to maximize the value of FTX, which could imply a possible sale of the exchange:
“We believe the existing customer base is extraordinarily valuable and our understanding is based on our research and looking at costs incurred by other cryptocurrency companies specifically to solicit customers.”
The client list is currently sealed, but various media outlets, including Bloomberg, Financial Times, The New York Times and The Wall Street Journal’s parent company, Dow Jones & Company, filed an objection to the decision.
The media organizations argued that the press and the public have “a presumed right of access to bankruptcy files.”
According to Coffsky, FTX has started a “significant” process of soliciting interest from buyers, investors, or even a relaunch of the exchange, and the client list is “extremely valuable and valued” by those interested in the business.
Based on Cofsky’s discussions with interested bidders: “Existing customers would be extremely valuable to […] third parties interested in investing in the business.”
Also sees value in the list for reorganization where customers get equity and interest to trade on the exchange.
— FTX 2.0 Coalition (@AFTXcreditor) June 8, 2023
According to Cofsky’s conversations with interested bidders: “Existing customers would be extremely valuable to […] third parties interested in investing in the business”.
He also sees value in the listing for the reorganization where clients get capital and interest to trade on the exchange.
“I think that disclosing that information would impair the debtor’s ability to maximize the value it currently holds,” he added.
Cofsky believes that Even if the exchange doesn’t sell or find investors, a relaunch could see creditors collect a portion of the trading fees from what it called a “top class” and “regulatory compliant” FTX.
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