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Bankrupt crypto exchange FTX recovers over $7.3 billion in cash and crypto assets, according to a bankruptcy court hearing.
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FTX considers a relaunch in Q2, with former Head of Institutional Sales proposing a market for trading creditor claims, but challenges and doubts remain.
The bankrupt cryptocurrency exchange, FTX, has made a spectacular recovery, having successfully retrieved over $7.3 billion in cash and cryptocurrency assets, marking a positive turn of events for the failed exchange. According to FTX’s attorney at a recent bankruptcy court hearing, over $800 million has been recovered since January, further enhancing the recovery efforts.
FTX’s Possible Relaunch
As the exchange recovers from its financial woes, there are indications that FTX could be looking to relaunch in the second quarter of this year, giving hope to former users of the platform. However, questions remain about the viability of this relaunch, given the controversies surrounding the brand and the crypto community is not so happy about it.
#FTX just recovered $7.3B in assets.
— EvanLuthra.eth (@EvanLuthra) April 13, 2023
They are planning to relaunch the exchange in Q2!
Will you use it again?
Comment below👇 pic.twitter.com/4O9QqwJcTk
The Proposal to Revive FTX
Former Head of Institutional Sales at FTX, Zane Tackett, has suggested that the bankrupt exchange should be revived with a market for trading creditors’ claims, similar to Bitfinex’s approach. Tackett proposes offering a token that represents creditor claims to provide liquidity to those wanting to sell their claim and allow others the opportunity for a larger payoff.
Challenges Ahead
While the possibility of relaunching FTX is exciting, Tackett acknowledges that there are several challenges in executing the proposed plan. These include the use of recovered funds to finance the reboot and the potential risks if the relaunched exchange fails again. Tackett believes that the success of a revived FTX would depend on its approach, which should be run like a crypto company with agility.
The recovery of FTX’s assets and the prospect of its relaunch are positive developments for the once-promising exchange. However, the tarnished reputation of the brand may make it challenging to regain the trust of its former users.
The proposal to revive the exchange through the trading of creditor claims may provide a solution to the issues surrounding bankruptcy. Nonetheless, the viability of the relaunch remains uncertain, given the potential risks involved.