The future of the bankrupt crypto exchange FTX seems to be taking a positive turn as new CEO John Ray spearheads a reboot plan, according to recent court filings. In a compensation report submitted on May 22, the FTX team outlined Ray's efforts in relation to the Chapter 11 bankruptcy proceedings, including the mention of rebooting FTX, which has grabbed the attention of the crypto community.
The idea of relaunching the troubled crypto exchange was initially brought up by Ray in January of this year. Reports at the time indicated that FTX had discovered $5.5 billion in liquid assets, and the new CEO was collaborating with creditors to devise a revival strategy. However, as no further updates emerged in the following month, the crypto community shifted its focus elsewhere. Nevertheless, a report in April suggested that the exchange had recovered $7.3 billion in assets, and the FTX team was aiming to restart the crypto exchange by the second quarter of 2024.
The recent court filing confirms that a reboot plan is indeed being considered. The document reveals that Ray has been engaged in a series of meetings with creditors and debtors over the past month. These discussions have revolved around various key issues, such as structuring the exchange, reviewing plans for its restatement, finalizing the necessary materials for the reboot of FTX 2.0, and commenting on the FTX 2.0 bidder list. It appears that FTX will soon enter a bidding process as part of its relaunch strategy.
The news of the FTX reboot has had a positive impact on the price of the native FTX token (FTT), which surged by over 13% upon the public announcement of the relaunch.
The court filing has brought a sense of relief to the crypto community, with many applauding Ray's efforts to revive an exchange that owes billions to its creditors. One prominent crypto influencer, known on Twitter as DegenSpartan, expressed optimism about FTX 2.0, believing it could offer a viable path to recovery for all parties involved. DegenSpartan pointed out that many creditors may sell their assets at low prices in order to exit their positions, which could ultimately restore solvency to the crypto exchange. However, not everyone shares this optimism, as some critics argue that the exchange's origin itself was tainted by fraudulent practices.
A Twitter user voiced their concern, stating that allowing FTX to resume operations would be morally wrong, claiming that the exchange has harmed the industry through its exploitative actions.
As the court proceedings continue and the reboot plan progresses, the fate of FTX hangs in the balance. The crypto community eagerly awaits further updates and hopes that a successful relaunch will be realized, offering a fresh start for the exchange and a chance for creditors to recover their losses.