Plans to restart bankrupt cryptocurrency exchange FTX were confirmed in a new personnel and compensation report filed with the United States Bankruptcy Court for the District of Delaware on Monday.
The document shows that acting CEO John J. Ray III spent hours engaging in various activities to devise a revival plan for the troubled cryptocurrency exchange in April.
Plans for FTX 2.0 in the works
The CEO first revealed that a revival of FTX was on the table in January, two months after the exchange collapsed due to a severe liquidity crisis. Ray, whose duty it is to ensure that FTX’s creditors receive as much compensation as possible, said he would consider restarting or liquidating the exchange’s assets, which would create more value.
Last month, after FTX recovered approximately $7.3 billion in distributable assets, lawyer for the exchange Andy Dietderich revealed that the legal team would discuss further steps for a potential restart and plans to submit a preliminary reorganization plan in July. He added that confirmation of the plan would likely take place in the second quarter of 2024.
A few days later, reports surfaced that San Francisco-based venture capital firm Tribe Capital was considering a $250 million fundraising campaign to help FTX restart operations. Tribe reportedly intends to lead the round with $100 million of itself and limited partners. The firm’s CEO, Arjun Sethi, has already met with FTX’s committee of unsecured creditors to discuss the deal.
The latest court filing has hinted at plans to restart the exchange, as Ray spent more than six hours attending to related matters in the past month. Some activities include review of steps and materials and feedback on the FTX 2.0 bidders list. The bourse’s reorganization plan would involve a bidding process.
A divided crypto community
It is worth noting that the reports on the revival of FTX are based on hypothetical statements and speculation drawn from inside information, as neither Ray nor the unsecured creditors committee have released a concrete plan for the initiative.
While some members of the crypto community believe FTX 2.0 would be the best path to recovery for all parties involved, others doubt the feasibility of the plan. Customers who worked with the company before its demise said it underperformed due to high latency, bugs in the merchant application programming interface (API) and coding difficulties.
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This post FTX CEO Suggests Restart Plans for Exchange in New Compensation Report
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