FTX in Talks to Relaunch International Arm
Bankrupt cryptocurrency exchange FTX is in discussions to revive its international division, according to a Wall Street Journal report. FTX’s CEO, John J. Ray III, stated that the company has started seeking interested parties to relaunch the FTX.com exchange. Efforts to restructure the company have included selling the FTX crypto derivatives platform LedgerX for $50 million and proposing the sale of shares in Mysten Labs Inc. for $95 million. FTX is exploring options, including a joint venture, to bring back its international arm. Figure, a U.S. blockchain company, has shown interest in a potential deal.
- FTX.com may restart as a joint venture
- Interest from Figure, a U.S. blockchain company
- Management awaiting additional signs of interest from other investors
- Possibility of compensating current customers with a share in the relaunched exchange
- FTX collapse led to total crypto market cap falling below $1 trillion
FTX Founder to Face Trial in October
Sam Bankman-Fried, the founder of FTX, is scheduled to go to trial on October 2 after a U.S. District Judge rejected his request to dismiss most of the charges against him. Bankman-Fried had submitted a legal petition seeking the dismissal of 11 out of the 13 criminal charges, arguing that they were based on a fraud theory that had been nullified by the U.S. Supreme Court. He is accused of using FTX customer funds to cover market losses and making illegal donations to U.S. political campaigns using friends’ names.
Hot Take: FTX’s efforts to relaunch its international arm could bring new opportunities for the exchange and its customers, potentially providing a chance for compensation. However, the company’s bankruptcy and the legal troubles faced by its founder have had significant negative impacts on the crypto market. It remains to be seen how FTX’s revival will unfold and if it can regain trust in the industry.
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