According to a recent court filing, plans to relaunch the bankrupt cryptocurrency exchange FTX could soon come to fruition as replacement chief executive officer John Ray is currently working on a reboot initiative.
Per the court filing, the FTX presented a report that highlighted the work that had been completed by Ray during the bankruptcy proceedings. The report detailed a number of measures taken by Ray to protect the debtors’ best interests. Still, the mere mention of relaunching FTX quickly captured the attention of the cryptocurrency community.
In January, Ray first discussed relaunching the bankrupt cryptocurrency exchange. At that point, media reports indicated that the insolvent exchange had uncovered a total of $5.5 billion in assets that were liquid, with the replacement CEO collaborating with creditors on a plan to revive the company.
The FTX team intends to relaunch the exchange by Q2 of 2024, according to a report from April that indicated the exchange had reclaimed $7.3 billion worth of assets.
The most recent court filing indicates that a restart strategy is being seriously considered. Over the last month, the newly appointed CEO had set up a number of meetings with lenders and debtors, according to court records.
The main topics during those meetings included preparing for the exchange’s new framework, evaluating the plans for the restart, and completing the documentation necessary for relaunching the exchange as FTX 2.0. It appears from the document that FTX will participate in a type of bidding process.
The news about the FTX reboot also boosted the price of the native FTX Token, which jumped by over 13% as news about the relaunch became public.
The court record provided relief to a tired cryptocurrency community, with many praising Ray’s attempts at reviving an exchange that still owes billions of dollars to its creditors.
DegenSpartan, a prominent cryptocurrency influencer, suggested that FTX 2.0 could be the most effective route to recovery for everyone involved. He said that numerous creditors would be selling assets at a discount in order to get out of asset pools, which might ultimately render the cryptocurrency exchange solvent once more.
Not everyone was thrilled about the possibility of a reboot, however, as some claimed that the exchange itself was founded on a fraudulent concept. One social media user went so far as to state that allowing FTX to once again become operational would be cruel, stating:
“FTX literally has blood on its hands from all the ‘plucking’ they have done to our industry.”