The infamously defunct cryptocurrency exchange FTX is planning to reopen and offer its services in the future.
Bitcoin exchange In a court proceeding on Wednesday, April 12, attorneys for FTX from the large American law firm Sullivan & Cromwell stated that it is likely to reopen in the future after receiving proceedings from the bankruptcy claim.
The court was informed by FTX’s lead attorney, Andy Dietderich, that reopening the cryptocurrency exchange was one of several viable options being considered for the future of the company.
In addition, Dietderich discussed raising a sizable sum of money to reopen the exchange. However, it is still up for debate within the company whether the money will come from FTX Estate assets or some other source.
In addition, Dietderich said that “there are possibilities that customers could have an option to take part of their proceeds from the estate that they would otherwise receive in cash and receive some kind of an interest in the exchange going forward.”
When FTX’s legal team alluded to a potential reopening during the hearing, the rumors about the company were strengthened after information about the potential sale of its Europe division broke.
A reorganization plan for FTX was disclosed to Judge Dorsey by the company’s legal team. The plan is expected to be filed in July and could be approved by Q2 2024.
One of the biggest cryptocurrency exchanges in the world, FTX, with its headquarters in the Bahamas, and Sam Bankman-Fried (SBF) as its CEO, experienced a dramatic collapse in November 2023. During this time, the value of FTT, the exchange’s native token, fell from $26 to $1.5.
Compiled by Coinbold