The bankrupt cryptocurrency exchange FTX will be relaunched. In Q2 2024, the platform will be able to resume support for crypto exchange transactions and offer trading in FTX claims.
Zane Tackett, Former FTX Head of Institutional Sales, suggested relaunching the platform. Also, Sullivan & Cromwell attorneys representing the company in court confirmed that the platform would be able to resume support for exchanging cryptocurrencies in Q2 2024.
According to Tackett, FTX’s relaunch shouldn’t be accompanied by a resumption of support for all the products the exchange offered before the collapse, but also offer a new tool for affected investors. For example, Tackett suggests adding the ability to trade via FTX 2.0 with tokenized claims — tokens representing creditor claims.
“If [creditors] were able to convert their debt to equity and get exposure to the investments FTX had/has, I think that would be a massive benefit,” Former Executive argues. Such an approach, he said, would help the exchange accumulate liquidity and give investors an opportunity to make money. However, Tackett believes FTX 2.0 needs to be nimble and open; otherwise, it won’t regain user confidence.
At a hearing in the U.S. Bankruptcy Court for the District of Delaware on April 12, Sullivan & Cromwell attorneys said the crypto firm returned about $7.3 billion in liquid assets. They also stressed that the prospects for the crypto exchange to resume operations were pretty strong. However, when asked by Judge John Dorsey how the company planned to raise capital to resurrect the exchange, the attorneys didn’t give a direct answer. They said FTX was in talks with interested parties and would make a final decision this quarter.
Amid news of the crypto exchange’s possible relaunch, the FTT token soared more than 90%. According to CoinGecko, at 14:00 (GMT+3) on April 13, the token was trading at $2.22. Although a day ago, its value didn’t rise above $1.26. FTT’s price rose above $3 momentarily.
Remarkably, the Swiss court upheld a petition filed by the board of directors of FTX Europe AG regarding the moratorium procedure. Thus, the European division of the bankrupt exchange is allowed a “potential sale of the business.”
Over 130 companies, merged into FTX Group, began bankruptcy proceedings in the District of Delaware under Chapter 11 of the U.S. Code in November 2022. And in January 2023, FTX lawyers provided the court with a “creditor matrix” of the company, which included about 70,000 firms and 9.7 million users.
