FTX Thinking About Options for Restarting Its Crypto Exchange
According to a report by Reuters, the crypto exchange FTX has recovered more than $7.3 billion in cash and liquid assets as per the company's attorney in a hearing in Delaware at US bankruptcy court.
The attorney, Andy Dietderich said the company is starting to think about the future with months of effort in collecting resources figuring out what went wrong under the leadership of Sam Bankman Fried.
Source: PYMNTS
The recent surge in crypto has benefited the exchange according to Andy Dieterich.
John Ray, the new CEO of FTX has detailed the the funds transfers that were improperly and poor accounting at the collapsed FTX and has described as a complete failure of controls.
Now, for the future of FTX, reportedly FTX is negotiating with the stakeholders about the options for restarting its crypto exchange and is expected to make a decision on the matter in the current quarter according to Dietderich.
So far, customers from Japan are able to withdraw their funds from FTX because of the strict crypto regulations, said Dietderich.
According to the lawyer, FTX would require a significant amount of capital to restart its crypto exchange. However, as per Dietderich, it is unclear the company is going to use its own funds for that purpose rather than using it paying back the customers. Restarting the exchange might require outside funding or sale of the exchange's assets.
Bankman Fried and multiple other company's insiders have been charged with fraud for their role in FTX's collapse. While Sam Bankman Fried's pleading for being not guilty, former members of his inner circle have been pleaded guilty and they have agreed to cooperate with the prosecutors.
Will FTX going to get the trust of the former and new customers after it's disastrous failure? We don't know but I guess it would be difficult for them winning their trust again and they will need to work hard for it.
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