FTX, the crypto exchange whose collapse sent shockwaves through the industry last year, could come back to life. According to new court filings, FTX’s new management, led by CEO John Ray III, has engaged in meetings and activities focused on rebooting the company’s operations.
FTX Management Eyeing Bidding Process to Restart the Exchange
The revival of the collapsed FTX is already in progress as new CEO John Ray III continues to draw up a plan to reboot the crypto exchange, new court filings on May 22 revealed.
On Monday, the FTX team published a compensation report outlining the work Ray and his team have done relating to FTX’s Chapter 11 bankruptcy, including several activities the company’s new management has carried out on behalf of debtors.
However, the report also mentions plans to restart FTX, raising many eyebrows in the crypto community. Namely, the document shows that Ray held several meetings with creditors and debtors in April, some of which have been focused on reviewing and finalizing the “2.0 reboot of exchange material for distribution,” and commenting “on 2.0 bidder list,” among other things.
Mentions of FTX 2.0 Were There for a While
Although mentions of FTX 2.0 were highlights of the report, this was not the first time Ray and the new FTX management voiced their plans to reboot the crypto exchange. In January, reports revealed that FTX had discovered $5.5 billion in liquid assets, adding that Ray was working with creditors on a restart plan.
This was followed by another report in April when it was revealed that FTX recovered $7.3 billion in assets and that the leadership was planning to relaunch the exchange by Q2 2024. Before all this, co-founder and ex-CEO of FTX, Sam Bankman-Fried, welcomed the idea of restarting FTX and issuing new FTT tokens, saying it would be “a productive path for parties to explore.”
FTX collapsed in November 2022 as a result of a liquidity crisis triggered by its former management, who misused investor funds and manipulated trading volumes. Bankman-Fried got arrested in December 2022 and was extradited to the US, where he face a myriad of charges for what’s seen as one of the biggest financial frauds on record.
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