FTX CEO Suggests Restart Plans – Here Is What It’s Looking To Do

The plans to restart FTX have been successfully confirmed in a new staffing and compensation report filed with the United States Bankruptcy Court for the District of Delaware. In the document, it shows the acting CEO John J. Ray III, engaged in a series of activities in April, drawing up a revival plan for the troubled platform.

https://twitter.com/Crypto_Potato/status/1660955783293464576?s=20

Plans for FTX 2.0 In Progress

In January, the CEO revealed the plans to revive the FTX bankruptcy exchange. Ray, whose duty is to ensure FTX creditors are well compensated, asserted that he would look into liquidating the exchange’s assets, generating more value.

Nonetheless, FTX recovered about $7.3 billion in distributable assets last month. However, FTX attorney, Andy Diertreich, has noted that the legal team is discussing subsequent steps for a potential reboot and plans to file a preliminary reorganization plan in July. He further stated that the program will likely be confirmed in Q2 2024.

A few days later, reports emerged that San Francisco-based venture capital firm Tribe Capital was considering a $250 million fundraising campaign to help the exchange restart its operations. Reportedly, Tribe intends to lead the round with $100 million from itself and limited partners. The firm’s CEO, Arjun Sethi, has already met with FTX’s committee of unsecured creditors to discuss the progress.

However, the latest court filing has hinted at plans for FTX’s restart. Ray spent more than six hours attending to related matters in the past month. Some activities include reviewing steps and materials and commenting on the FTX 2.0 bidder list. Notably, the exchange’s reorganization plan would involve a bidding process.

The Crypto Community

It is worth noting that reports about FTX’s revival are based on hypothetical statements and speculation drawn from internal information. Neither Ray nor the committee of unsecured creditors has released a concrete plan for the initiative.

While some crypto community members believe FTX 2.0 would be the better path to recovery for all involved parties, others doubt the plan’s viability. Clients who worked with the firm before its demise said it performed poorly due to high latency, bugs in the application programming interface (API) for traders, and coding difficulties.

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