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FTX Customer List: A Valuable Asset
FTX's extensive customer list, comprising approximately nine million individuals, is perceived as "immensely valuable." Its public disclosure, however, could potentially diminish the cryptocurrency exchange's value if sold, according to a member of FTX's restructuring team.
During a court proceeding disclosed on June 8, Kevin Cofsky, a partner at investment bank Parella Weinberg and an external advisor to FTX, emphasized that if rival exchanges become privy to FTX's customer base, it could have adverse implications for the exchange's restructuring plans.
Exploring Maximum Value Realization Strategies for FTX
As part of the team tasked with extracting the greatest possible value from FTX, Cofsky is exploring several alternatives, including a potential sale of the struggling exchange. He elaborated:
"Our analysis reveals that the existing clientele is of immense value, derived from our comprehensive research and insights into the costs borne by other crypto enterprises in customer acquisition efforts."
Presently, the client list is sealed. However, several major media outlets like Bloomberg, Financial Times, The New York Times, and The Wall Street Journal's parent company, Dow Jones & Company, have objected to this confidentiality, asserting that the press and public should have access to bankruptcy filings.
Exploring Options: Sale, Investment, or Relaunch
According to Cofsky, FTX has initiated a significant process to attract potential buyers or investors, or even consider a reboot of the exchange. The customer list, he states, is "extremely valuable" and a key point of interest for those contemplating involvement with the business.
He commented, "I believe that publicizing this information could compromise the debtor's ability to leverage its current value to its maximum potential."
Cofsky is of the opinion that even in the absence of a sale or securing investors, the exchange's relaunch could result in creditors accruing a share of trading fees from what he referred to as a “premier” and “regulation-compliant” FTX.
