In a surprising turn of events, FTX, the cryptocurrency exchange that faced financial difficulties, is pushing forward with its efforts to revive its once-prominent international cryptocurrency exchange.
According to a recent report from The Wall Street Journal, FTX CEO John J. Ray III is determined to forge ahead with his initiatives to resurrect the cryptocurrency exchange. Ray stated that the company has initiated “the process of soliciting interested parties” for the reboot of FTX.com.
Insiders familiar with the matter have revealed that the collapsed cryptocurrency firm has commenced early discussions with potential investors to secure backing for the relaunch of the FTX exchange. These discussions are said to explore possibilities such as joint ventures and partnerships with blockchain lending company Figure.
Sources have indicated that interested parties have been given a deadline until the end of the week to submit Letters of Intent (LOIs) outlining their proposed terms and conditions for participation.
It is noteworthy that the sources have mentioned the possibility of offering current FTX creditors a stake in the restructured cryptocurrency exchange, along with other forms of compensation.
FTX CEO John Ray III officially announces FTX reboot bidding process.
Figure is one of the bidders interested in a restart.
Bidders have until end of week to submit LOIs. pic.twitter.com/KhQayGwanq
— FTX 2.0 Coalition (@AFTXcreditor) June 28, 2023
In response to the market excitement surrounding the FTX reboot, the price of its native token, FTT, has witnessed a significant surge of over 38% within the past 24 hours. As of the time of writing, the FTT token is being traded at $1.75, primarily driven by substantial inflows of capital into the altcoin market.
It is anticipated that FTX will opt for a rebranding strategy and not adopt a name such as “FTX 2.0” or any variation related to its original name. Instead, they are likely to choose a new name for the revamped entity.
Overall, it appears that Ray and the FTX team believe that a reboot is the most favorable approach to ensure the best possible outcome for creditors in terms of repayment.
As of April, FTX’s legal team expressed their expectation that the exchange’s launch would be finalized sometime in the second quarter of 2024.
Based on the recent report on the recovery process, FTX continues to face a significant shortfall of nearly $2 billion in its financial records.
In a related development, FTX filed a lawsuit against Daniel Friedberg, a former regulatory officer at the company, on June 27. The lawsuit alleges that Friedberg engaged in the payment of “hush money” to silence potential whistleblowers, as well as approving fraudulent transfers and loans.
Compiled by Coinbold