coinedition.com
Days after FTX unveiled a reboot plan, Kraken FX co-founder Jesse Powell said an FTX relaunch might be worse than starting from scratch. Under its new leadership, the bankrupt crypto exchange unveiled a new plan to relaunch and pay off its debts on Monday. However, there is a lot of skepticism about whether the plan would work out.
According to Powell, FTX, in its current state, would struggle to accomplish anything in the market. First, the tarnished brand means customers would be wary of the platform. Likewise, the company has no team, licenses, or banking, all of which are essential to running properly.
To Powell, the relaunch is a way to extract fees from “delusional creditors.” Instead, he suggests that the team auction off its domain name and restart under a new platform.
Since its infamous collapse last year, FTX has become embroiled in a myriad of issues. The former crypto exchange giant went down after misappropriation and abuse of customer funds allegations surfaced. While it is recovering assets to meet up with its debt, its new CEO, John J. Ray III, believes there is a chance to relaunch the crypto exchange.
According to a new draft plan released on Monday, FTX.com plans to form an offshore company where claimants can hold equity securities, tokens, or other interests. The plan also contains a creditor-repayment plan for settling customers’ claims. Additionally, the firm intends to wipe out its native token, FTT.
However, a group representing FTX customers has criticized the plans and called it “extremely disappointing.” According to the details of a July 31 court filing, FTX’s Official Committee of Unsecured Creditors (UCC) said the FTX team failed to carry them along with the plans nor consider their suggestions.
Per the filing, the FTX team “did not have a single call or meeting” with the UCC group to discuss its bankruptcy plans. Also, the plan does not appoint a crypto-experienced person to run the relaunched company, which the group complained about.