According to June 28 report, John Ray, the head of FTX restructuring, states that the firm has “begun the procedure of seeking interested applicants to restart the FTX.com exchange.”
As per sources, the company has been in discussions with investors about funding for a possible revival. One party who expressed interest in the process is the blockchain lending firm Figure.
According to reports, potential bidders have until the last day of the week to submit Letters of Intent, which describe the requirements of their participation.
However, the sources claimed that the present FTX creditors might receive various kinds of payment in addition to a stake in the reorganised cryptocurrency exchange.
It is anticipated that FTX will decide to rebrand as a company with a different namesake rather than adopting the term “FTX 2.0” or any other variation of it.
In general, it seems like Ray and the rest of the FTX team believe that a reboot is the best method to guarantee that creditors receive the best results in terms of being paid back.
The legal team for FTX stated in April that they anticipate the opening of the new exchange to take place somewhere in the second half of 2024.
FTX still has a nearly $2 billion deficit in its books, as per an article on the recovery process from June 26. The alleged abuse of customer assets by important leadership at FTX has made the efforts to recover these missing cash much more difficult.
FTX sued Daniel Friedberg, a ex-regulatory officer at FTX, on June 27 for allegedly providing “hush money” to quiet potential witnesses and approving a number of illicit payments and loans. It is believed that Friedberg emerged as an unidentified party in several of the court proceedings.
A $243 million Bahamian real estate portfolio, many donations to non-profit organisation and a number of suspected investments in venture capital businesses were also highlighted in the study on the missing assets.
