Bankrupt digital asset exchange FTX has begun preliminary discussions with potential investors as part of efforts to relaunch the cryptocurrency trading platform, Wall Street Journal Reported on Wednesday, citing John J. Ray III, the new CEO of the exchange.
According to the US publication, FTX is considering floating a rebranded entity that will operate through various structures, including as a joint venture. Informed sources told the outlet that the exchange’s management was discussing potential compensation for some of its existing clients, including in the form of stakes in a reorganized entity.
One of the first parties to show interest in the reboot business is Figure, a California-based blockchain technology company. FTX also expects other interested investors to show interest during this week.
In January, Ray said he was looking into the possibility of reviving the cryptocurrency exchange. The CEO, who took over the reins of the exchange from its founder Sam Bankman-Fried in November, said some customers had praised the platform’s technology and suggested it be restarted.
FTX collapsed last year after news emerged that the exchange’s client assets were being used to back up the assets of sister quantitative trading company Alameda Research. The development led to a liquidity crunch that forced FTX to file for bankruptcy protection in Delaware, United States.
FTX is under the leadership of John J. Ray
Ray previously criticized the operation of FTX and its subsidiaries under Bankman-Fried, calling it “a complete failure of corporate controls”. He criticized the governance structure, cash and human resource management, exchange controls, digital asset custody record keeping, investment and decision making activities of the FTX Group under the previous CEO.
Since taking over the affairs of the bankrupt FTX, Ray has made efforts to recover the assets of the exchange and its subsidiaries in an effort to ensure a successful reorganization of the business. These efforts led to the sale of FTX’s cryptocurrency derivatives platform, LedgerX, and the proposed sale of Mystern Labs for $95 million, among others.
Meanwhile, FTX’s bankruptcy team revealed Monday that it has recovered $7 billion of the $8.7 billion owed to FTX clients. On the other hand, Bankman Fried, who was arrested in the Bahamas last year and later extradited to the United States, continues to fight US prosecutors before his first trial, which is scheduled for October 2023.
a revolution that lowers crypto fees; BitPay adds new payment options; Read snippets of today’s news.
Bankrupt digital asset exchange FTX has begun preliminary discussions with potential investors as part of efforts to relaunch the cryptocurrency trading platform, Wall Street Journal Reported on Wednesday, citing John J. Ray III, the new CEO of the exchange.
According to the US publication, FTX is considering floating a rebranded entity that will operate through various structures, including as a joint venture. Informed sources told the outlet that the exchange’s management was discussing potential compensation for some of its existing clients, including in the form of stakes in a reorganized entity.
One of the first parties to show interest in the reboot business is Figure, a California-based blockchain technology company. FTX also expects other interested investors to show interest during this week.
In January, Ray said he was looking into the possibility of reviving the cryptocurrency exchange. The CEO, who took over the reins of the exchange from its founder Sam Bankman-Fried in November, said some customers had praised the platform’s technology and suggested it be restarted.
FTX collapsed last year after news emerged that the exchange’s client assets were being used to back up the assets of sister quantitative trading company Alameda Research. The development led to a liquidity crunch that forced FTX to file for bankruptcy protection in Delaware, United States.
FTX is under the leadership of John J. Ray
Ray previously criticized the operation of FTX and its subsidiaries under Bankman-Fried, calling it “a complete failure of corporate controls”. He criticized the governance structure, cash and human resource management, exchange controls, digital asset custody record keeping, investment and decision making activities of the FTX Group under the previous CEO.
Since taking over the affairs of the bankrupt FTX, Ray has made efforts to recover the assets of the exchange and its subsidiaries in an effort to ensure a successful reorganization of the business. These efforts led to the sale of FTX’s cryptocurrency derivatives platform, LedgerX, and the proposed sale of Mystern Labs for $95 million, among others.
Meanwhile, FTX’s bankruptcy team revealed Monday that it has recovered $7 billion of the $8.7 billion owed to FTX clients. On the other hand, Bankman Fried, who was arrested in the Bahamas last year and later extradited to the United States, continues to fight US prosecutors before his first trial, which is scheduled for October 2023.
a revolution that lowers crypto fees; BitPay adds new payment options; Read snippets of today’s news.