December 9, 2023

The FTX debtors revealed during a hearing on April 12 that the restructuring team has amassed $7.3 billion in liquid assets. According to an attorney representing the defunct cryptocurrency exchange, the exchange is currently considering a relaunch. Following the announcement, the exchange’s token, FTT, surged by more than 70% from $1.30 to $2.35 per unit.

Lawyers say FTX is considering reboot

Lawyers representing FTX debtors recently told a US bankruptcy judge that they are discussing the possibility of relaunching the exchange. Andrew Dietderichs of Sullivan & Cromwell said that various opinions are being discussed in relation to this matter. The law firm is examining tax implications and “long-term options”. Additionally, the restructuring team has discovered $7.3 billion in liquid assets, and Chief Restructuring Officer John J. Ray III and his team have published a 43 page interim report,

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The report outlines a number of control failures in the areas of finance and accounting, digital asset management, and management and governance. Specifically, “a handful of employees had virtually limitless power to directly transfer fiat currency and crypto assets, and to hire and fire employees, without any effective oversight or control over how they exercised those powers.” Are.” The report also states that FTX failed to implement basic, widely accepted security controls to protect crypto assets.

During the information search, FTX debtors had to examine QuickBooks records, laptops and slurred conversations of senior executives. The report states that some of the FTX Group entities used QuickBooks as their general ledger. It also alleges that senior FTX executives “misappropriated and misappropriated corporate and customer funds” and “lied to third parties.” This idea of ​​rebooting the exchange was first mentioned in January when Ray confirmed that he was open to the possibility of reviving FTX.

See also  Binance.US to acquire bankrupt crypto exchange Voyager’s assets for $1 billion, weeks after planned FTX deal failed

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After news of a possible relaunch became public, FTX’s crypto token, ftt, rose 70% against the US dollar from $1.30 to the current $2.44 per unit before the court hearing. a large number of ftt Illegally issued from the address of the main employer of FTT last year. While the bankrupt exchange keeps FTT, it is highly consolidated. top ten wallets Holding 94.19% of the circulating supply.

What do you think about the possibility of relaunching FTX? Should the exchange be given a second chance or is it time to move on from FTX? Share your thoughts in the comments section below.

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