Despite FTX’s ongoing bankruptcy proceedings, the Abu Dhabi-Based Crypto Firm, Hayvn, sets out to buy FTX Pay. The company is not buying FTX Pay for its technology but for its relationships.
Hayvn sees “gold” in infamous FTX landfill
Abu Dhabi-based crypto trading company, Hayvn’s board has approved a plan to bid for FTX Pay through a public process on Friday, 25 November 2022. The company has hinted it is not buying FTX Pay for its technology but for its relationships.
The executives are said to consider the collapsed FTX’s payments business, FTX Pay, a well-suited company matching the Hayvn Pay infrastructure. While Crypto exchange FTX is reportedly planning to consider the offer of selling or reorganizing its subsidiaries, including the payments business.
Co-founder and CEO of Hayvn, Christopher Flinos, said FTX’s payments business, FTX Pay, is a valuable asset for Hayvn because of its relationships with big companies such as Mastercard. Moreover, it reportedly has a solvent balance sheet and a better management team.
Flinos stated, “We are pleased to learn that some FTX businesses have solvent balance sheets, responsible management, and valuable franchises. We are open to a discussion with their bankers, Perella Weinberg, as soon as they have the court’s approval to proceed.”
The virtual asset trading firm, Hayvn was granted regulatory approval by the Abu Dhabi Global Market in December 2021. Hayvn Pay has partnered with UAE companies, including Damac Properties, developer Nakheel, and the government of Dubai, to allow people to buy property using cryptocurrencies.
Hayvn believes acquiring crypto exchange FTX Pay will be suitable for the company as it perfectly matches Hayvn’s Pay infrastructure.
“Acquiring FTX Pay will help solidify our position as the global leader in cryptocurrency payment solutions.” Flinos cited.
Why are big firms still looking into FTX?
Regardless of the infamous collapse, FTX’s spoils might still have potential.
FTX, Alameda Research, and subsidiaries filed for Chapter 11 bankruptcy in the U.S. on November 11. Sam Bankman-Fried resigned as CEO, and insolvency veteran John J. Ray III became CEO of FTX to manage the firm’s restructuring.
However, reports say that Binance is also looking into acquiring FTX assets. Binance CEO “CZ” confirmed earlier that the crypto exchange is engaged with FTX and Genesis and may acquire FTX assets. Binance CEO has allocated another $1 billion in BUSD to the Industry Recovery Initiative, increasing the balance to over $2 billion.
In a bankruptcy hearing, Alvarez & Marsal, advisor for FTX restructuring, reported that the company has $1.24 billion in cash balances.