In recent court filings, it has been revealed that FTX, a bankrupt crypto exchange, is actively working on a revival plan under the leadership of its new CEO, John Ray III. The filings highlight the progress made by Ray in relation to the Chapter 11 bankruptcy proceedings, with particular attention given to the intention of rebooting FTX. This development has caught the interest of the crypto community.
Ray initially mentioned the idea of reviving the troubled crypto exchange in January of this year. Reports at the time suggested that the bankrupt exchange had discovered $5.5 billion in liquid assets, and the new CEO was collaborating with creditors to formulate a revival plan. After a month passed without any updates, the crypto community moved on. However, in April, a report surfaced stating that the exchange had managed to recover $7.3 billion in assets, and the FTX team was aiming to relaunch the crypto exchange by the second quarter of 2024.
The recent court filing confirms that the reboot plan is indeed being considered. It outlines that the new CEO has been conducting a series of meetings with creditors and debtors over the past month. These discussions have covered various crucial aspects, such as the restructuring of the exchange, review of restating plans, finalizing the necessary materials for the reboot of FTX 2.0, and providing feedback on the FTX 2.0 bidder list. The details in the document suggest that FTX will be entering a bidding process.
The news of the FTX reboot has had a positive impact on the native FTX token (FTT), with its price surging by over 13% as the announcement of the relaunch became public.
This court filing has brought relief to the crypto community, with many commending Ray's efforts to revive the exchange that owes billions to its creditors. One prominent crypto influencer, known on Twitter as DegenSpartan, believes that FTX 2.0 could be a promising path to recovery for all parties involved. The influencer suggested that many creditors would be willing to sell their assets at lower prices just to exit their positions, potentially helping the exchange become solvent again. However, not everyone shares this optimism about the reboot process, as some argue that the exchange itself was founded on fraudulent principles.
One Twitter user expressed strong opposition to allowing FTX to resume operations, considering the exchange's alleged unethical practices.