Breaking: Abu Dhabi-Based Crypto Firm Plans To Acquire FTX, But There’s A Catch

Crypto trading firm Hayvn based in Abu Dhabi, the UAE considering a bid for collapsed FTX’s payments business FTX Pay, the company said on Friday. Hayvn executives consider FTX Pay as a well-suited business, matching the Hayvn Pay infrastructure. Crypto exchange FTX is reportedly planning to sell or reorganize its subsidiaries, including the payments business.

Hayvn Plans to Submit Bid for FTX’s Payments Business

The Abu Dhabi Global Market granted regulatory approval to virtual asset trading firm Hayvn in December 2021. Hayvn is now considering acquiring crypto exchange FTX’s payments business FTX Pay, as it perfectly matches with Hayvn Pay infrastructure, reported The National on November 25.

Christopher Flinos, co-founder and CEO of Hayvn, said FTX Pay is a valuable asset for Hayvn because of its relationships with big companies such as Mastercard. Moreover, it reportedly has solvent balance sheet and a better management team.

“We are pleased to learn that some of the FTX business 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.”

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 restructuring of the firm.

Despite the ongoing bankruptcy proceedings, Hayvn board has approved a plan to bid for FTX Pay through a public process. The company is not buying FTX Pay for its technology, but for its relationships.

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.

“Acquiring FTX Pay will help solidify our position as the global leader in cryptocurrency payment solutions.”

Binance May Acquire FTX Assets

Binance CEO “CZ” confirmed earlier that the crypto exchange is engaged with FTX and Genesis and may acquire FTX assets. Alvarez & Marsal, advisor for FTX restructuring, in a bankruptcy hearing reported that the company has $1.24 billion in cash balances.

Binance CEO has allocated another $1 billion in BUSD to the Industry Recovery Initiative, increasing the balance to over $2 billion.