The new CEO of the insolvent cryptocurrency exchange FTX, John Ray III, is working on a reboot plan to relaunch the failed crypto exchange as FTX 2.0, according to the most recent court filings.
A May 22nd court filing reveals that the FTX team detailed Ray’s contributions to the Chapter 11 bankruptcy in a compensation report.
The review report described several measures taken by Ray to protect the best interests of the debtor. Nonetheless, the mention of relaunching FTX garnered the most interest from the crypto community.
Ray first discussed relaunching the ailing cryptocurrency exchange in January of this year.
At the time, news reports indicated that the insolvent cryptocurrency exchange had discovered $5.5 billion in liquid assets, and the new CEO was negotiating a plan of action with the exchange’s creditors.
The crypto community moved on after a month with no new developments.
The FTX team intends to relaunch the crypto exchange by the second quarter of 2024, according to a report published in April that suggested the exchange had recovered $7.3 billion in assets.
The most recent court filing suggests a restart strategy is being considered. In the past month, the new CEO has scheduled several meetings with creditors and debtors, according to the court document.
During the meeting, significant issues included planning the exchange’s structure, reviewing and restating the exchange, finalizing the material necessary for rebooting the cryptocurrency exchange FTX 2.0, and commenting on the FTX 2,0 bidder list.
According to the document’s specifications, FTX will participate in a tendering process.
As news of the relaunch of the FTX became public, the price increased by more than 13 per cent.
The court document brought new relief to the cryptocurrency community, with many praising Ray’s efforts to revive the exchange that owes billions of dollars to its creditors.
A prominent crypto influencer known on Twitter as DegenSpartan asserted that FTX 2.0 might be the optimal path to recovery for all parties.
He observed that many creditors would sell so cheaply to get out of these pools of assets, which could eventually make the cryptocurrency exchange solvent once more.
However, only some were enthusiastic about the reboot, as many claimed that the origin of the exchange was founded on a fraudulent mindset.
A user on Twitter stated that enabling the FTX exchange to resume operations would be incredibly dangerous. ” FTX has blood on its hands due to all the “plucking” it has done to our industry.
