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After successfully recouping $7.3 billion in assets, recent reports from reliable sources predict that FTX may reopen the exchange within the second quarter of 2023. During a hearing that took place on April 12 in the United States bankruptcy court for the district of Delaware, attorneys from Sullivan & Cromwell representing FTX said that the cryptocurrency firm had recovered around $7.3 billion in assets. The hearing was held in the United States. The deliberation took place in the United States of America.
Meanwhile, exchanges flee American markets
As FTX looks to make a comeback, more exchanges seem to be fleeing the US markets as more regulations are being instilled on them by the US watchdogs which led to Bittrex seizing operations in the US. Also, for the next week, existing dYdX customers may continue trading as usual. They will be required to resign from their existing posts after April 14th. Withdrawals may still be made, however, some have speculated that new regulations were the key reason dYdX stopped serving Canadians.
What’s going on at FTX now?
According to a document from the creditors that was turned in during the month of March, the four FTX business silos had around $4.8 billion in assets as of November 2022. This is despite the fact that an examination into the assets is still in progress and has not yet been completed.
According to the legal team, FTX will also consider restarting operations at its cryptocurrency exchange at some point during the second quarter of 2023. This suggests that a restart might take place as early as April if the company decides to go forward with the plan.
It was believed that FTX CEO John Ray III was contemplating resurrecting the defunct exchange during an interview that took place in January.Sam Bankman-Fried's failing cryptocurrency exchange filed for bankruptcy in November 2022, and since then it has been involved in several judicial proceedings.The legal team that is defending the creditors has said that the cryptocurrency exchange known as FTX may give new consideration to its activities later on in the year.
Paxos joins suit in evading US markets
Additionally, users in Canada are being urged by Paxos to get their money out of the service at their "earliest convenience," as the company has announced that after June 2nd, 2023, account holders will be unable to make any more transactions. However, according to the Paxos website, inactive accounts will be canceled on May 9, 2023.
The stablecoin issuer said that after June 2, consumers would still be able to access their assets, albeit it will take more time and need more procedures. Although the business did not specify why it was leaving, Paxos did say that it "will continue to assess its readiness to re-enter the Canadian market in cooperation with the OSC at a future date." Due to the country's stringent regulatory policies, several companies, including OKX and dYdX, discontinued their services.
The Canadian Securities Administrators (CSA) announced in February 2023 that cryptocurrency exchanges seeking registration in Canada would be required to make "enhanced investor protection commitments" in the form of "an enhanced pre-registration undertaking.If a crypto firm cannot or will not provide this accommodation, Canadian users will be blocked from using their platform.
Watchdogs around the world doubling down on crypto
As of the end of 2022, the CSA has still recommended that bitcoin exchanges keep customer funds separate and ban margin and leveraged trading. Cryptocurrency trading, according to regulators, is fraught with danger because of the murkiness surrounding exchanges' compliance, the interconnectedness of the sector as a whole, the possibility of hacking and bankruptcy, price volatility, and other factors.
Also, this week, Australian authorities suspended Binance's license and requested the exchange to shut down its derivatives operations out of concern for the safety of retail customers trading in cryptocurrencies.