Intendsย to restart the bankrupt digitalย currency exchange FTXย Tradingย Ltd have been confirmed in a new staffing and compensation report filed with theย Unitedย States Bankruptcy Court for the District of Delaware on Monday.
The document shows that acting CEO John J. Ray III spent hours engaging in plentyย of activities to devise a recovery strategy for the troubled cryptocurrency exchange in April.
Plans for FTXย Tradingย Ltd 2.0 in the Works
The CEO 1st disclosed that reviving FTXย Tradingย Ltd was on the table in January, two months after the exchange collapsed owingย to a severe liquidity crunch. Ray, whose duty is ensuring that FTXโs creditors receive as much compensation as possible, pointedย outย that he would consider rebooting or liquidating the exchangeโs assets, which would generate more value.
Theย previousย 30ย days, after FTXย Tradingย Ltd recovered approximately $7.3 Billion in distributable assets, the exchangeโs attorney Andy Dietderich revealed that the legal team would discuss subsequent steps for a potential reboot and intendsย to file a preliminary reorganization strategy in July. He alsoย mentionedย that confirmation of the strategy would likely take place in Q2 2024.
Severalย days thereafter, reports resurfaced that San Francisco-based deal financialย resources company Tribe Financialย resources was seeingย as a $250 Million fundraising campaign toย assist FTXย Tradingย Ltd restart its operations. Tribe reportedly plansย to lead the round with $100 Million from itself and limited partners. The firmโs CEO, Arjun Sethi, has already met with FTXโs committee of unsecured creditors to discuss the arrangement.
Theย mostย recent court filing has intimated at plans for the exchangeโs restart, as Ray spent greaterย than 6 hours tending to related matters in the past 30ย days. Several activities include reviewing steps and materials and commenting on the FTXย Tradingย Ltd 2.0 bidder list. The exchangeโs reorganization strategy would involve a bidding process.
A Divided Cryptocurrency Community
It is worth keepingย inย mindย that reports about FTXโs recovery are accordingย to hypothetical statements and speculation drawn from internal information, as neither Ray nor the committee of unsecured creditors has released a concrete strategy for the initiative.
Althoughย while some members of the cryptocurrency community believe FTXย Tradingย Ltd 2.0 would be the better path to recovery for all involved parties, others doubt the planโs viability. Clients who worked with the company before its demise said it performed poorly owingย to high latency, bugs in the appย programming interface (API) for traders, and coding difficulties.
