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Latest crypto news: FTX lawyer, Andrew Dietderich, stated that there will be no platform relaunch, but there are sufficient funds to fully reimburse all clients and creditors.
Summary
Crypto News FTX: yes to customer refunds and no to platform relaunch
According to reports, during a hearing, FTX lawyer Andrew Dietderich stated that there are sufficient funds to fully reimburse all customers and creditors of the bankrupt crypto-exchange.
“At the moment, we expect to have sufficient funds to fully pay all customer and creditor requests”
At the same time, however, Dietderich also stated that there will be no relaunch of the platform, due to the lack of interested investors.
“A related disappointment is FTX 2.0. We still have valuable customer data and information to monetize. But after exhaustive effort, no investor is willing to commit the necessary capital to relaunch the offshore exchange.”
In practice, Dietderich emphasized that the companies that FTX acquired for hundreds of millions of dollars have proven to be of little interest and value. Precisely for this reason, there are no investors supporting the restart of the platform in its FTX 2.0 version.
Crypto News FTX: the hypothesis of recovery has faded
It was October 2023, almost a year after the bankruptcy declaration, when the bankruptcy trustees of FTX expressed the possibility of a possible restart of the platform in the market.
The hypothesis was based on the offers from some companies that wanted to invest in the cause and benefit from the customer base, which amounts to 9 million users.
At that moment, FTX had managed to recover a large part of the 9 billion dollar deficit owed to investors of the old platform, and the idea was to seize the moment to restart the business.
John J. Rally III, the current CEO of FTX, together with the bankruptcy trustees, have been studying from that moment until today the possible recovery plan, but unfortunately here is the negative verdict arrived this month.
The sale of nearly $1 billion worth of Grayscale Bitcoin spot ETF shares
In the month of January, FTX made headlines for the sale of approximately 1 billion dollars in shares of Grayscale’s Bitcoin spot fund, since it was converted into a spot ETF.
This is the GBTC fund, which has also become an ETF on Bitcoin spot after the general approval of the US Securities and Exchange Commission on January 10, 2024.
In general, Grayscale’s spot ETF on bitcoin has surpassed competing funds in terms of trading volume, mainly due to significant outflows.
Anyway, the sale of Grayscale’s ETF shares by FTX is an integral part of the bankruptcy procedure of the former crypto-exchange. The bankruptcy move would have liquidated all 22 million shares previously held by FTX.