FTX may soon rise from the ashes. Indeed, the CEO in charge of the bankruptcy proceedings has plans to relaunch the cryptocurrency exchange platform. This hypothetical FTX 2.0, hailed by Sam Bankman-Fried, would aim to reimburse all customers ruined by the implosion of the exchange.
Bankrupt since November, the FTX empire has been taken over by attorney John J. Ray III. With 40 years of experience, he was responsible for overseeing the company’s bankruptcy proceedings and asset recovery on behalf of creditors. For memory, theexchange owes money to more than one million entities and individuals.
Despite the company’s spectacular debacle, John J. Ray III is seriously considering it platform resurrected cryptocurrency exchange, FTP extension. com. In an interview with Wall Street Journal, the new CEO explained that a working group has been set up. According to him, the platform still has potential, despite the fraudulent activities perpetrated by the former leaders. According to the lawyer, it is the disastrous financial management and the excessive expenses of the managers that have polluted the company’s potential.
“Everything is on the table. If there’s a way forward on this, then we’re not only going to explore it, we’re going to do it.states John J. Ray III.
Relaunching theexchange, the lawyer hopes to raise enough funds to reimburse all clients harmed by the collapse of FTX. He has pledged to look into this option. The other solution is resell all company assets, as well as the exchange platform, and to return the sale amount to investors. At this point, bankruptcy attorneys are still pondering how best to proceed.
“There are stakeholders we work with who have identified what they consider to be a viable business”assures the lawyer.
While considering the reopening of FTX, John J. Ray III continues to raise funds belonging to theexchangeand dispersed by SBF teams on several wallets. By examining more than 30 terabytes of data, the forensic teams of the courts also got their hands on $5 billion in assets and a $4.6 billion investment portfolio.
Read also: Former FTX.US CEO Reveals Truth About Sam Bankman-Fried
Sam Bankman-Fried hails the potential return of FTX
Under house arrest pending trial, Sam Bankman-Fried, founder and former CEO of FTX, immediately took to Twitter to welcome the solution envisaged by John J. Ray III. For once, the two men are visibly on the same wavelength, SBF hints sarcastically:
“I’m glad Mr. Ray is finally pretending to reactivate the exchange after months of failed attempts!” “.
Glad Mr. Ray is finally paying lip service to get the exchange back up and running after months of cracking down on such efforts!
I’m still waiting for him to finally admit that FTX US is creditworthy and give the customers money back…https://t.co/XjcyYFsoU0https://t.co/SdvMIMXQ5K
— SBF (@SBF_FTX) January 19, 2023
A few weeks ago he had has already raised the idea of relaunching FTX in December, shortly before his arrest. To accompany the return of theexchange, SBF recommended issuing a new FTT token. This cryptocurrency would be offered to all creditors as repayment. By betting on the increase in the price of this token, the 30-year-old believes it is possible that investors can generate profits.
The former billionaire claims that FTX would disaster escaped if he hadn’t filed for bankruptcy. He says he received several loan offers intended to resolve the company’s cash crunch shortly after the bankruptcy. In his eyes it would take a few weeks to recover the funds of all users. For this he opposes the operations carried out by John J. Ray III, with the support of the American courts, since November.
At the same time, Sam Bankman-Fried continues to deny some of the conclusions made by the John J. Ray III teams. In his opinion, the American branch of FTX is solventand, and always has been. Urges new company management to refund customers as soon as possible. For his part, John J. Ray III ensures that the remaining assets of FTX.US are “ significantly lower than total customer balances.
Stunned by Sam Bankman-Fried’s practices, the attorney preferred cut ties with the founder of FTX. According to John J. Ray III, this ” I didn’t say anything I didn’t already know”. He believes SBF’s comments regarding the alleged last minute bailout of the platform are unhelpful and selfish. Annoyed, the former billionaire replied that the lawyer ” pretends to care about customers”.
“Mr. Ray keeps making false claims based on non-existent calculations”, SBF equipment.
A bad idea?
Unsurprisingly, the prospect of FTX’s resurrection has given it a boost during the FTT, the utility token whose value plummeted in November. Just hours after John J. Ray III’s interview was published, the price of FTT soared above $2, up 40%. The token even got close to $2.50.
Despite the investor euphoria, many observers are finding the reboot of the FTX platform hard to believe. Asked by CoinTelegraphLeigh Travers, CEO of Binance Australia, estimated that theexchange will have difficulty regain customer trust. According to him, investors have migrated to other services, such as Binance, and have no plans to go back. Same observation from Liam Hennessy, partner of the Australian law firm Gadens, who fears that FTX 2.0 will fail to obtain the approval of the regulators.
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