Bankrupt FTX begins revival of international exchange, The Wall Street Journal reports
- FTX exchange’s John J. Ray III said the firm has started the process of soliciting interested parties for a reboot.
- The FTX.com exchange is in initial discussions with investors about a relaunch of the international trading platform.
- The intended revival comes as bankruptcy proceedings continue and managers uncover past misconduct.
Samuel Bankman-Fried’s FTX exchange has started talks with investors for the revival of the bankrupt exchange’s international platform. The failed exchange is conducting initial discussions with interested parties, FTX CEO John J. Ray III told The Wall Street Journal.
FTX’s revival is a key development for the crypto industry as the exchange’s collapse was one of the catalysts of the crypto winter and the subsequent bloodbath in Bitcoin, Ethereum and altcoins’ prices.
The exchange has recovered nearly $6.2 billion in cryptocurrencies as of April 2023. The total value of customer funds stolen from the exchange platform is $9 billion, according to the new managers handling the bankruptcy proceedings.
Also read: FTX creditors await retrieval of lost funds as Alameda Research receives $57.5 million in Tether
FTX exchange gears up for reboot
The exchange’s current CEO, John J. Ray III, who took over the reins during bankruptcy filing in November 2022, told the Wall Street Journal that the firm has started the process of soliciting interest parties.
FTX.com exchange is preparing for its revival despite taking a hit on its reputation after nearly $9 billion in customer funds were stolen when the exchange went bankrupt last year. Of these ,nearly $6.2 billion have been recovered, according to a Reuters report from April.
The exchange’s bankruptcy and collapse unleashed a wave of distress in several crypto lenders and platforms, some of which subsequently filed for bankruptcy. Crypto firms BlockFi and Genesis were among these casualties.
FTX.com exchange’s revival through a joint venture structure opens up the possibility of compensation for new customers, possibly offering stakes or holdings in the rebranded and recognized entity.
Technology firm is interested in FTX reboot
Figure, a blockchain technology startup, has expressed its interest in FTX.com’s reboot. The tech firm was part of a group of investors that bid for the revival of Celsius Network, but lost to a Fortress Investment Group-backed consortium.
The WSJ report does not name any other interested parties.
The new CEO first expressed interest in relaunching the exchange in January, when a task force was put together to investigate the alleged criminal conduct at FTX. There is no news about FTX US’s revival or whether the international exchange will serve US-based customers.
What FTX’s revival means for FTT holders
A revival of the bankrupt crypto exchange platform could offer a better outcome to creditors and former customers of the exchange. A distribution of FTT, the exchange’s native token, could help customers recover at least a percentage of the lost funds, and pay for transactions and trading on the new platform.
Liquidators in the Bahamas seized nearly 195 million FTT tokens from FTX’s account in November 2022. With a settlement framework, the assets could be recovered and the token could be used to repay creditors.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
