Key Takeaways
- FTX has been engaged in talks with potential investors regarding the financing of this ambitious reboot
- FTX has reportedly commenced the process of seeking interested parties to participate in the revival of the exchange.
In the latest development in the FTX bankruptcy proceedings, the Sam Bankman Fried-founded crypto exchange is making strides towards resurrecting its flagship international platform, FTX.com, despite its recent bankruptcy, according to CEO John Ray. The Wall Street Journal reported on Wednesday that the company has commenced the process of seeking interested parties to participate in the revival of the exchange.
Sources familiar with the discussions revealed that FTX had been engaged in talks with potential investors regarding the financing of this ambitious reboot. Among the interested parties is Figure, a blockchain lending company. Discussions have reportedly explored various structures, including the possibility of a joint venture.
In April, the legal team representing FTX stated that they anticipate the launch of the new exchange to be finalized sometime in the second quarter of 2024. The latest development also comes amid FTX filing a lawsuit against Daniel Friedberg-former Executive at the company, alleging he made “hush money” payments to two potential whistleblowers to stop them from leaking information about “regulatory issues” and the alleged close ties between FTX and Alameda.
FTX’s troubles began with a highly publicized collapse last year, leading to its subsequent bankruptcy. Prosecutors have since levied allegations of criminal mismanagement against the company. Co-founder Sam Bankman-Fried faced eight financial crime charges after being arrested in the Bahamas by the Complex Frauds and Cybercrime Unit in the Southern District of New York back in December.
While Bankman-Fried pleaded not guilty in January, he faced additional charges in February, bringing the total number of charges against him to 13. These charges include conspiracy to commit wire fraud, defrauding the United States, and violating campaign finance laws.
Despite the legal challenges and financial burdens facing FTX, the company remains hopeful that the reboot of FTX.com will mark a turning point. With over a million creditors, the exchange owes over $3 billion to its top 50 creditors alone. The successful revival of FTX.com could offer some respite to these stakeholders, as well as demonstrate the potential for recovery in the cryptocurrency industry.
