FTX’s new chief executive Considers Exchange Reboot

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Key Takeaways:

  • Bankrupt FTX’s new CEO, John Ray, is exploring the possibility of resurrecting the exchange.
  • The CEO stated that they are working to determine whether restarting the exchange would add more value.

John J. Ray III, the new CEO of FTX, said he was evaluating the possibilities of reviving the defunct cryptocurrency exchange. In an interview with the Wall Street Journal, Ray said that he had formed a task group to determine whether restarting the exchange’s international website, FTX.com, was practical.

According to the CEO, this is being done to account for the possibility that FTX services would resume and add significantly more value to the exchange than the present strategy of asset liquidation.

Notably, the FTT token of the bankrupt cryptocurrency exchange increased by almost 35% after the WSJ reported that the new CEO of the business is considering the prospect of resuming the exchange. 

The U.S. Securities and Exchange Commission asserted in a lawsuit in December 2022 that the exchange token FTT of FTX is a “security” because it was advertised as an investment contract.

Some FTX users also believe that the exchange itself has a more advanced technological foundation and may be repurposed.

Furthermore, Ray also addressed the latest assertions made by Sam Bankman-Fried, the former CEO. SBF’s comment, he said, was not constructive. He further denied the need for speaking with SBF, stressing that the outgoing CEO had not disclosed any relevant information.

Since declaring bankruptcy in November after one of the biggest crypto companies collapses in history, FTX has suspended operations.

Sam Bankman-Fried, the founder and former CEO of FTX, is accused of embezzling billions of dollars from FTX customers in order to fund dangerous wagers at a related hedge fund called Alameda Research.

The new CEO feels, Another alternative would be to completely shutter the exchange after returning the cryptocurrency held by its users.

He declared, “Everything is on the table.”

If there is a way to proceed with [restarting FTX], we will not only investigate it but also take it.”

Mr. Ray’s plan to revive FTX has naturally piqued the interest of the crypto community. FTX is generating more discussion every day, ranging from when the exchange will restart operations to whether or not it would reimburse customer funds.

Users like @Tradermayne are speculating on whether they will receive their money or whether a change in the existing plan will endanger investors once more.

While some users think that this is a tried-and-true tactic to pump FTT, others think that restarting the exchange would prove to be futile.

How the FTX administrators will circumvent the announced plan to resume the exchange is still a mystery.  In @SamTheCobra’s words, all we can do is just hope that this goes well.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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