Proof Group is one of three bidders eyeing a potential acquisition of the fallen crypto exchange FTX according to multiple sources familiar with the matter. The investment firm is already well-versed in the crypto sector.
As part of the Fahrenheit Consortium, the company worked with numerous other investors and crypto businesses, including Arrington Capital, to win an auction for Celsius – a crypto lending firm that had gone bankrupt four months prior to FTX. Proof has already approached other investors to gauge potential interest in the bid, according to a source contacted by Bloomberg. CoinDesk first reported Proof’s bid on Monday.
Investments in the Crypto Sector
Proof Group’s website showcases their investments in numerous crypto startups. These include the Apto blockchain development team, Aptos Labs, the cross-chain interoperability network Thorchain, and Lightspark – a company leveraging Bitcoin’s lightning network to enable fast, cheap, and global fiat currency transfers. Furthermore, they were responsible for setting up a staking platform on Celsius as part of its relaunch, as indicated by bankruptcy filings.
Staking allows investors in certain cryptocurrencies to generate yield by locking up their tokens to provide network security.
Leadership with Crypto Industry Experience
Proof Group is led by individuals who are well-entrenched in the crypto industry. Its founder and managing partner, Noah Jessop, previously held executive positions at Core Scientific – a major Bitcoin mining firm currently undergoing its own bankruptcy process. Jessop also served as a product manager in Libra-Meta’s failed attempt to launch a USD-pegged stablecoin.
FTX’s founder, Sam Bankman-Fried, was recently convicted of seven counts of fraud and conspiracy and faces a potential maximum prison sentence of 115 years. Bankman-Fried also has another trial scheduled for March 11, where he will face charges of securities fraud, derivatives fraud, and conspiracy. The Department of Justice has until February 1 to inform the judge overseeing the case if they plan to pursue these additional charges.
