CEO Garlinghouse said Ripple is considering offers for FTX assets

    Tanya Sharma
    Tanya Sharma
    Published on November 22, 2022 8:59 AM

    Updated on January 10, 2023 2:20 PM

    FTX, a defunct cryptocurrency exchange, is apparently interested in selling some of its assets to Ripple CEO Brad Garlinghouse.
    CEO Garlinghouse said Ripple is considering offers for FTX assets
    Source: Head topics

    On November 16 and 17, Ripple's Swell conference took place in London, where FTX CEO Bankman-Fried called Ripple CEO Brad Garlinghouse two days before the company declared bankruptcy in an effort to gather investors to save it.

    Multiple companies have shown interest in SBF’s FTX

    The demise of the reputable exchange FTX has continued to have a negative impact on the cryptocurrency economy.

    Many organizations have expressed interest in helping Sam Bankman-Fried's failing company from the outset. Binance first considered throwing a life jacket but eventually changed his mind.

    At about the same time, Justin Sun of Tron asserted that he was developing a plan with FTX to "initiate a pathway forward."

    Ripple is looking to examine business opportunities.

    However, as of late, the blockchain payment giant Ripple has expressed interest in purchasing some of the assets of the struggling cryptocurrency exchange FTX.

    After the call SBF and Brad. then talked about if there were any FTX-owned companies that Ripple "would want to own."

    "I mentioned to SBF that if he needed cash, there may be companies he has purchased or that he owns that we might be interested in purchasing. There may be investments that we want to own. Have we purchased some of those from him? That was clearly a possibility, in my opinion.

    CZ called FTX “desperate” for approaching them

    In reality, Changpeng Zhao, the executive of Binance, and the executive of FTX had a similar conversation.

    SBF approached CZ, and the latter believed he was going to request an OTC agreement to buy the FTT tokens in order to quiet the market commotion.

    The former FTX CEO did, however, "quite rapidly indicate that they're in significant danger, and they're seeking for a buyout" on the call. CZ continued by saying that he was aware that SBF was "desperate" when he approached him.

    Garlinghouse explained why the transactions would end up being a "harder road to transact," saying,

    “It will now be considerably different from how it would have been one-to-one because of the US bankruptcy proceeding path. I'm not denying that we will examine those items; I know we will. But doing business there is more difficult.”

    The bankruptcy case in Delaware includes about 130 FTX-related businesses, including FTX.US.LedgerX, a crypto clearinghouse, FTX Digital Markets, FTX Australia Pty, and payment processor FTX Express Pay are a few subsidiaries that are not involved in the proceedings.

    FTX personnel would be welcome at Ripple but…..

    It appears that Ripple's leadership, like many others in the sector, are keeping up with the most recent FTX scandal developments.

    David Schwartz, the chief technology officer of Ripple, tweeted on November 10 that FTX personnel would be welcome at Ripple as long as they aren't "engaged in compliance, finance, or business ethics."

    Garlinghouse stated that he would be interested in purchasing the components used by commercial customers.

    Will Ripple ultimately suffer the same fate as BlockFi and FTX?

    Given that FTX, a significant and large corporation, is currently in danger of failing, there are various concerns about the viability of other businesses. David Schwartz, CTO of Ripple, recently expressed his views on Twitter regarding the same.

    “To be fair, you do refer to almost everything as a Ponzi scheme and fraud. And we hardly ever learn that something was, surprise, legitimate. We simply don't learn that it's a fraud or swindle. Thus, there is actually no risk.”

    David left open the chance that Ripple would experience "terrible things." He admitted that, after all, it is a business. He stated that he found it difficult to "imagine" that awful things may occur to XRP.

    What happened Last week at FTX?

    Kroll has recently been chosen by FTX as its agent to monitor all claims made against it and make sure interested parties are kept informed of developments during its Chapter 11 bankruptcy case. Kroll's expertise in restructuring administration will help FTX.

    Additionally, as was noted at the end of last week, the US and the Bahamas appear to be in conflict about jurisdiction at present time. Beginning in November, the US filed for Chapter 11 bankruptcy protection on behalf of the Bahamas-based corporation.

    The Securities Commission of The Bahamas said in a recent announcement,

    Related: New filing shows that FTX owes more than $3 Bn from 50 investors

    “The Commission does not believe that FTX Digital Markets Ltd. is a party to the US Chapter 11 Bankruptcy proceedings.”