As initially reported by The Sunday Times, Brad Garlinghouse, Ripple CEO, revealed that Ripple might be interested in acquiring certain of the assets of the now defunct and bankrupt FTX exchange. [See, e.g. Nimmo, J. Crypto giant Ripple eyes deals for FTX assets. (Accessed November 19, 2022)]. He stated that his interest lies in the parts of FTX with a focus of its stakes in other companies as well as the parts dealing solely with institutional clients. [See, e.g. Adejumo, O. Ripple to the Rescue as CEO Plans to Acquire Some FTX Businesses Following Collapse. (Accessed November 19, 2022)].

In other words, Garlinghouse is looking at picking through the carcass of the roadkill - FTX.

Apparently, CZ was not the only competitor to be contacted by SBF prior to the bankruptcy filing. Garlinghouse told The Times that FTX founder and chief executive contacted him two days prior to the bankruptcy. SBF was making an attempt at rounding up investors to inject equity into the failing FTX for the purpose of trying to rescue the business. Despite the situation being dismal, Garlinghouse described SBF’s mood as ‘chipper’.

During this pre-bankruptcy call, Garlinghouse and SBF reportedly discussed whether or not there were any FTX business entities which Ripple might want to own. As per Garlinghouse: “Part of my conversation was if he needs liquidity, maybe there’s businesses that he has bought or he has that we would want to own […] Would we have bought some of those from him? I definitely think that was on the table” [Ng, F. Ripple to consider deals for FTX assets: Brad Garlinghouse. (Accessed November 19, 2022)].

Nonetheless as time has shown, Ripple made no purchase of any FTX entity pre-bankruptcy, with Garlinghouse now admitting as FTX has filed Chapter 11, any potential Ripple transaction would be on much different terms than would a pre-bankruptcy FTX to Ripple would have been. Clearly the intervening bankruptcy has changed the dynamics of any potential Ripple purchase.

However, even though FTX is now in bankruptcy, speaking on any potential purchases of FTX entities by Ripple, Garlinghouse admitted: “I’m not saying we won’t look at those things – I’m sure we will. But it’s a harder path to transact” [Ng, supra].

Around 130 business entities previously operating under the veil of FTX, which includes FTX.US, are part and parcel in the bankruptcy proceeding. Several FTX entities were excluded including: LedgerX, FTX Digital Markets, FTX Australia Pty, and FTX Express Pay. Garlinghouse has reiterated that Ripple would be interested in the FTX entities that served only business customers.

All in all, the entire FTX saga demonstrates a shipwreck. Even with the filing of the bankruptcy, there is a long process ahead before any resolution of the mess left by SBF is had. It is truly sad that so many investors are out so much of their funds with no relief in sight.