Plans to restart bankrupt cryptocurrency exchange FTX were confirmed in a new employment and compensation report filed with the US Bankruptcy Court for the District of Delaware on Monday.
the document Offers Acting CEO John J. Ray III spent hours engaging in various activities to come up with a plan to revive the cryptocurrency exchange in April.
Plans for FTX 2.0 are in the works
The CEO first revealed that a revival of FTX was on the table in January, two months after the stock market crashed due to a severe liquidity crisis. Ray, whose duty is to ensure that FTX creditors receive as much compensation as possible, indicated that he would consider restarting or liquidating the exchange’s assets, which would generate more value.
Last month, after FTX reclaimed nearly $7.3 billion in distributable assets, exchange attorney Andy Dittderich revealed that the legal team would discuss next steps for a possible reboot and plans to file an initial reorganization plan in July. He added that the plan is likely to be confirmed in the second quarter of 2024.
A few days later, reports emerged that San Francisco-based venture capital firm Tribe Capital was considering a $250 million fundraiser to help FTX restart its operations. Tribe reportedly intends to lead the round with $100 million from itself and limited partners. The company’s CEO, Arjun Sethi, has already met with FTX’s panel of unsecured creditors to discuss the arrangement.
The latest court filing hinted at plans to restart the exchange, with Ray spending more than six hours addressing related matters in the past month. Some of the activities include reviewing steps, materials, and commenting on the FTX 2.0 Bidder List. The stock exchange reorganization plan will include a bidding process.
A divided crypto community
It should be noted that reports of an FTX revival are based on hypothetical data and speculation drawn from inside information, as neither Ray nor the Committee of Unsecured Creditors have released a concrete plan for the initiative.
While some members of the crypto community Believes FTX 2.0 would be the best path to recovery for all parties involved, and some doubt the viability of the plan. Clients who worked with the company before its demise He said It performed poorly due to high latency, bugs in the traders API, and coding difficulties.
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