Recent documents reveal that San Francisco-based cryptocurrency exchange Coin library The possibility of acquiring the European subsidiary of bankrupt cryptocurrency exchange FTX was explored.
Coinbase interested in acquiring FTX Europe
Report Fortune Magazine Reveals Cryptocurrency Exchange Coinbase Interested in Acquisition FTX Europe Its parent company, FTX, went bankrupt in November last year due to its highly profitable derivatives business and growing customer base.
The cryptocurrency exchange has twice shown interest in acquiring the European arm of FTX. The first time was the bankruptcy of the parent exchange in November last year, and now it is September 2023.
Coinbase’s recent interest in acquiring FTX’s European unit focuses on the cryptocurrency exchange’s strategy to expand its presence in the global cryptocurrency derivatives market amid a crackdown in the United States.
Cryptocurrency Derivatives is a financial contract that derives value from an underlying asset, e.g. Bitcoin (BTC) This is profitable for both traders and exchanges, including options, futures, and swaps.
Coinbase is not the only cryptocurrency exchange interested in acquiring FTX Europe.The report shows that other prominent cryptocurrency exchanges such as CryptonetTrek Labs also considered acquiring the exchange’s European unit.
Another reason why well-known cryptocurrency exchanges are interested in FTX’s European branch is that the company has obtained a coveted derivatives trading license after obtaining a regulatory license in Cyprus.
This gives FTX Europe an advantage over other well-known cryptocurrency exchanges, making this cryptocurrency exchange the only platform in the European market that offers a popular cryptocurrency derivative called perpetual futures.
However, following the cryptocurrency exchange, Coinbase has now entered the U.S. cryptocurrency derivatives market get Obtained regulatory approval in August 2023.
FTX Europe is currently still on sale, with the company’s sales end date set at September 24, 2023.
CEO detained ahead of court trial
FTX CEO Sam Bankman-Fried appointed rejected his request for release The court trial is still two weeks away. The FTX CEO appealed for bail in the hope of attending the trial from the comfort of his home, but unfortunately his appeal was withdrawn.
The judge overseeing the case, Lewis Kaplan, dismissed Bankman’s appeal and ordered the former FTX CEO to be detained at the Metropolitan Detention Center (MDC) in Brooklyn pending trial on October 3, 2023.
One of the findings that influenced the judge’s decision was that Bankman-Fried had reportedly attempted to tamper with and influence witnesses who testified against him.
Judge Lewis’ decision to revoke Bankman’s bail appeal was reviewed by a three-judge panel of the 2nd U.S. Court of Appeals to determine the accuracy of the decision.
However, it turned out that the decision was accurate and there was reason to believe that Bankman acted with a legitimate intention to try to influence two witnesses against him.
FTT Token seeing small gains | Source: FTTBUSD on Tradingview.com
Featured image from Reuters, chart from Tradingview.com