Bankrupt FTX Initiates Early Talks on Crypto Exchange Relaunch: Report

Bankrupt FTX Initiates Early Talks on Crypto Exchange Relaunch: Report

Time Stamp: June 28, 2023 10:39 AM
Bankrupt FTX Initiates Early Talks on Crypto Exchange Relaunch: Report PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Bankrupt
digital asset exchange FTX has kicked off initial discussions with potential
investors as part of efforts towards relaunching the cryptocurrency trading
platform, Wall Street Journal reported on Wednesday, citing John J. Ray III,
the exchange’s new Chief Executive Officer.

According
to the American publication, FTX is considering floating a rebranded entity
operated through various structures, including as a joint venture. Insider
sources told the outlet that the exchange management was discussing possible
compensation for certain existing customers, including in the form of stakes in
an reorganized entity.

One of the
early parties that have indicated interest in the rebooted business is Figure, a California-based blockchain technology firm. FTX also expects other
interested investors to state their interest during this week.

In January,
Ray had said he was looking into the possibility of reviving the crypto
exchange. The executive, who took over the reins of the exchange from Founder
Sam Bankman-Fried in November, said certain customers lauded the
platform’s technology and suggested a reboot.

FTX
crumbled last year after news emerged that the exchange’s customer
assets were being used to prop those of sister quantitative trading firm Alameda
Research. The development triggered a liquidity crisis that forced FTX to file for bankruptcy
protection in
Delaware, United States.

FTX under
John J. Ray

Ray has previously slammed the running of FTX and its affiliates under Bankman-Fried, calling it a ‘complete failure of
corporate controls.’ He faulted the governance structure, cash and human resources
management, disbursement controls, record-keeping of digital asset custody,
investment activities and decision-making of the FTX Group under the former CEO.

Since
taking over the affairs of bankrupt FTX, Ray has made efforts to recover the assets
of the exchange and its
affiliates in a bid to ensure successful reorganization of the business. These efforts have led to the sale of FTX’s crypto derivatives platform, LedgerX, and the proposed sale of Mystern Labs
for $95
million, among others.

Meanwhile, the FTX bankruptcy team on Monday disclosed that it has recovered $7 billion out of the
$8.7 billion owed to FTX customers. On the other hand, Bankman-Fried, who was arrested in the Bahamas last year and later extradited to the United
States, continues to battle US prosecutors ahead of his first trial billed
for October 2023.

Revolut slashes crypto fees; BitPay adds new payment options; read today’s news nuggets.

Bankrupt
digital asset exchange FTX has kicked off initial discussions with potential
investors as part of efforts towards relaunching the cryptocurrency trading
platform, Wall Street Journal reported on Wednesday, citing John J. Ray III,
the exchange’s new Chief Executive Officer.

According
to the American publication, FTX is considering floating a rebranded entity
operated through various structures, including as a joint venture. Insider
sources told the outlet that the exchange management was discussing possible
compensation for certain existing customers, including in the form of stakes in
an reorganized entity.

One of the
early parties that have indicated interest in the rebooted business is Figure, a California-based blockchain technology firm. FTX also expects other
interested investors to state their interest during this week.

In January,
Ray had said he was looking into the possibility of reviving the crypto
exchange. The executive, who took over the reins of the exchange from Founder
Sam Bankman-Fried in November, said certain customers lauded the
platform’s technology and suggested a reboot.

FTX
crumbled last year after news emerged that the exchange’s customer
assets were being used to prop those of sister quantitative trading firm Alameda
Research. The development triggered a liquidity crisis that forced FTX to file for bankruptcy
protection in
Delaware, United States.

FTX under
John J. Ray

Ray has previously slammed the running of FTX and its affiliates under Bankman-Fried, calling it a ‘complete failure of
corporate controls.’ He faulted the governance structure, cash and human resources
management, disbursement controls, record-keeping of digital asset custody,
investment activities and decision-making of the FTX Group under the former CEO.

Since
taking over the affairs of bankrupt FTX, Ray has made efforts to recover the assets
of the exchange and its
affiliates in a bid to ensure successful reorganization of the business. These efforts have led to the sale of FTX’s crypto derivatives platform, LedgerX, and the proposed sale of Mystern Labs
for $95
million, among others.

Meanwhile, the FTX bankruptcy team on Monday disclosed that it has recovered $7 billion out of the
$8.7 billion owed to FTX customers. On the other hand, Bankman-Fried, who was arrested in the Bahamas last year and later extradited to the United
States, continues to battle US prosecutors ahead of his first trial billed
for October 2023.

Revolut slashes crypto fees; BitPay adds new payment options; read today’s news nuggets.

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