Is FTX 2.0 set to debut soon? Court filing shows a reboot plan in making
A story from April claimed that the exchange had recovered $7.3 billion in assets, and that the FTX team intended to restart the market by the second quarter of 2024.
According to the most recent court documents, new CEO John Ray is working on a reboot plan for the bankrupt cryptocurrency exchange FTX, thus its rebirth aspirations may soon come to fruition.
The FTX team presented a compensation report noting Ray's performance throughout the Chapter 11 bankruptcy in a court filing on May 22. A number of actions Ray took to protect the debtor's best interests were cited in the review report. The crypto world paid heed, though, when the idea of resetting FTX was brought forward.
As evidenced by a court petition, FTX 2.0 will launch soon
The insolvent cryptocurrency exchange FTX is reportedly working on a reboot strategy, according to the most recent court records, thus its hopes of revival may soon be realized.
On May 22, the FTX team filed a court document outlining a compensation report that highlighted Ray's success during the Chapter 11 bankruptcy. The evaluation report mentioned several steps Ray made to serve the debtor's interests. But when the suggestion to reset FTX was made, the crypto community took notice.
In January, Ray initially mentioned restarting the problematic cryptocurrency exchange. News sources at the time claimed that the insolvent cryptocurrency exchange had found $5.5 billion in cash assets and that the new CEO was working with creditors to develop a resurrection strategy.
The FTX team intends to relaunch the exchange by the second quarter of 2024, according to a report from April that said the exchange had recovered $7.3 billion in assets.
According to the most recent court filing, a reboot strategy is undoubtedly being taken into account. In the previous month, the new CEO had organized a number of meetings with creditors and debtors, according to the court filing.
Meetings focused on establishing the exchange, examining restart plans, and finalizing the materials needed to relaunch the crypto exchange as FTX 2.0, among other things. The paper makes it seem like FTX will start a bidding procedure.
The FTX relaunch announcement also helped the native FTX Token's price, which increased by nearly 13% as word of the relaunch spread.
The court filing provided comfort to the cryptocurrency community, which praised Ray's initiatives to save the exchange that owes its creditors billions of dollars. Popular Crypto Twitter influencer DegenSpartan claimed that FTX 2.0 may offer the best chance for everyone involved to recover.
He said that many debtors would make low-ball offers to exit such asset pools, which might eventually make the cryptocurrency exchange profitable once more. Not everyone, however, was in favor of the reset procedure since they believed the exchange's foundation was founded on a dubious ideology.
Allowing FTX to continue operations, according to one Twitter user, would be a nefarious act. Because of all the "plucking" they have done to our industry, the user claimed that FTX "literally has blood on its hands."
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