FTX Eyes Relaunching Exchange After Recovering $7.3 Billion Assets

On a day when the attention was fixed on the Shanghai upgrade, FTX made a major announcement that it had recovered $7,3 billion in assets. However, experts caution that the news may not be as bullish as it seems.

After navigating a rocky period, cryptocurrency exchange FTX announced today that it had recovered $7,3 billion in assets, as the legal team behind FTX Sullivan & Cromwell reported. This presents a significant increase from the approximately $4.8 billion in scheduled assets reported in the March filing.

Following the announcement, FTX is setting sights on various future options, including relaunching its exchange. However, the final decision remains on hold. We won’t know of the exchange will emerge from bankruptcy for some time to come.

A Possible Way Forward

According to Andy Dietderich, FTX’s chief legal officer, reopening the exchange is one of the many possibilities the company is considering. The plan would require raising a significant amount of capital, and internally, they are debating whether that funding should come from FTX real estate or a third party.

The breakdown of $7,3 billion assets includes $2 billion in cash, $4.3 billion in crypto, $300 million in securities, and $600 million in investments. However, it’s important to note that these recovered assets will be frozen pending court approval of a customer payment plan.

The recovery of FTX’s assets marks a significant milestone in its efforts to overcome its bankruptcy challenges. This also gives hope to FTX’s customers eagerly waiting to receive their funds.

In fact, if this plan is successful, there may not be large losses for asset holders.

FTX CEO John J. Ray III hinted at the possibility of reviving the bankrupt exchange in a January interview after the company completes paying customers and creditors. With the recovery of substantial assets and plans to reboot the exchange, FTX is positioning itself for a solid comeback to the market.

In his first interview since taking over FTX in November 2022, FTX’s new CEO addressed the accusations of fraud and misappropriation of customer funds against the previous FTX leadership. Despite these challenges, Ray expressed confidence in FTX’s technology platform and its potential for revival.

A Rough Road to This Moment

One of the former leading exchanges, FTX, filed for Chapter 11 bankruptcy protection on November 14, 2022, following its sudden collapse. The company’s collapse led to an investigation by regulators in various jurisdictions, including the Commodity Futures Trading Commission and the Securities and Exchange Commission.

FTX’s bankruptcy was one of the most shocking events in the crypto market in 2022. Following FTX’s declaration, other crypto companies like Celsius, Voyager Digital, and BlockFi also filed for bankruptcy to secure the business.

Ray has a reputation for restructuring companies in crisis. He emphasized that the company has no problems with corporate governance. The CEO affirmed that some entities still see business potential in FTX.

Over the last few months, Ray’s team reportedly combined FTX data to locate where customer assets are kept since the exchange does not have a ledger of these activities or records of the transactions made.

Current employees have been calling FTX-invested companies to find out how much FTX was buying and the nature of those companies’ business.

Sam Bankman-Fried previously criticized how the new boss took over the company and disagreed with FTX’s filing for bankruptcy protection.

The FTX token price surged from $1.32 to $2.80, an increase of over 112%. However, since the bankruptcy filing, the token price has remained between $1 and $2.

Despite the uncertainty that surrounds the future of FTX, Ray’s leadership and efforts to revive the company have shown some promise. However, some experts remain cautious and warn that the crisis of trust that followed the company’s downfall may be too significant to resolve entirely.

The post FTX Eyes Relaunching Exchange After Recovering $7.3 Billion Assets appeared first on Blockonomi.

Related posts

Doggy AI Presale Reaches Over $101,000 Shortly After Launch

London, United Kingdom, June 12th, 2024, Chainwire Doggy AI (DOGYAI)has swiftly accumulated over…
Read more

Azuro Steps Into AI Using Olas to Predict Sports Event Results

Lisbon, Portugal, June 12th, 2024, Chainwire Azuro, the leading liquidity layer for onchain…
Read more

BlockDAG’s $48.8M Presale Victory Aims for $30 Target; Doubts Over TON’s Decline as ATOM Is Expected to Climb

Reaching a record high, Toncoin raises questions among investors about possible future declines. In…
Read more
Become a Trendsetter

Sign up for TheTechly’s Daily Digest and get the latest and trending technology updates.

[mc4wp_form id="729"]