The intends to restart FTX Trading Ltd 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 recovery strategy for the troubled platform.
Plans for FTX Trading Ltd 2.0 In Progress
In January, the CEO revealed the intends to revive the FTX Trading Ltd bankruptcy exchange. Ray, whose duty is to secure FTX Trading Ltd creditors are well compensated, asserted that he would look into liquidating the exchange’s assets, generating more value.
Still, FTX Trading Ltd recovered about $7.3 Billion in distributable assets the previous 30 days. Nonetheless, FTX Trading Ltd attorney, Andy Diertreich, has pointed out that the legal team is discussing subsequent steps for a potential reboot and intends to file a preliminary reorganization strategy in July. He further indicated that the program will likely be confirmed in Q2 2024.
Several days thereafter, reports resurfaced that San Francisco-based deal financial resources company Tribe Financial resources was seeing as a $250 Million fundraising campaign to assist the exchange restart its operations. Reportedly, Tribe plans 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.
Nonetheless, the latest court filing has intimated at plans for FTX’s restart. Ray spent greater than 6 hours attending to related matters in the past 30 days. Several activities include reviewing steps and materials and commenting on the FTX Trading Ltd 2.0 bidder list. It’s worth noting that, the exchange’s reorganization strategy would involve a bidding process.
The Cryptocurrency Community
It is worth keeping in mind that reports about FTX’s recovery are according to hypothetical statements and speculation drawn from internal information. Neither Ray nor the committee of unsecured creditors has released a concrete strategy for the initiative.
Although while some cryptocurrency community members believe FTX Trading Ltd 2.0 would be the better path to recovery for all involved parties, others doubt the plan’s viability. Clients who worked with the company before its demise said it performed poorly owing to high latency, bugs in the app programming interface (API) for traders, and coding difficulties.