FTX to choose from three options amid plans to resume cryptocurrency trading in December

The FTX cryptocurrency exchange has plans to resume operations come December 2023. Several plans are on the table as the platform’s founder, Sam Bankman-Fried (SBF), continues to deal with his prosecution case stemming from the former demise of the exchange.  SBF’s former colleagues are busy nailing him to the cross with a series of tell-all testimonies. 

The shamed crypto executive is facing charges for funneling FTX customer money into Alameda Research, a hedge firm that he controlled. Based on the allegations and witness testimonies, he used the money to make risky trades, donate to politicians and to buy expensive property, activities that preceded the collapse of the two companies.

Also Read: Nishad Singh was concerned over Sam Bankman-Fried’s extravagance, revelations as SBF trial kicks off new week

FTX to resume trading in December

FTX exchange has plans to resume operations around mid-December, with reports revealing three options are being considered. The plan to reboot was hatched in August with a proposed reorganization plan that would forge a path for some debtors to pool assets toward the creation of a new offshore platform that would serve international clients.

Bloomberg reports that the exchange’s investment banker, Kevin Cofsky of Perella Weinberg Partners,  has revealed in a court hearing in Washington, Delaware, that FTX is deliberating on details of potential binding offers with investors.

Based on the report, there are three options on the table, with Cofsky alluding to multiple parties engaging in the talks. The options being considered include:

• Sell the whole exchange, inclusive of over 9 million customers that are on its client list.
• Bring in a partner to aid in the rebooting of the platform.
• Rebooting the trading platform without outside partners.

FTX plans to make creditors whole

FTX exchange has been working out ways to raise money to make its creditors whole, an endeavor that has been on the cards since SBF’s cryptocurrency empire imploded in November 2022. As part of the recovery efforts, up to $7 billion worth of assets have already been recouped, with court documents detailing that $3.4 billion of that figure is comprised of crypto assets.

With this record of accomplishment, some of the most intense creditor disputes have already been settled, with FTX attorney Andrew Dietderich telling the court that this gave the cryptocurrency exchange the green light to “file a detailed payout plan in December.”