Bankrupt exchange FTX has lately been in the process of planning a reboot in the Crypto market, as per The Wall Street Journal’s recent Report from the 28th of June. The report that was released on Wednesday, announced that the previously dissolved company “has started seeking interested parties” for the relaunch of FTX, in the words of FTX’s CEO John Ray. Ray has reportedly opened the floor to all bidders who are interested in financing and supporting this comeback, WSJ added.
FTX will back its potential comeback through the incorporation of new business structures like joint ventures, and are even planning to carry out rebranding. Famous digital funding company– Figure, among others, has displayed interest in funding this project, reported CoinTelegraph. This week is the final deadline for all interested bidders to lodge their Letters of Intent. This letter of intent is essentially a compilation of documents that outline all the terms and conditions of this partnership with FTX.
Thomas Braziel, the Founder and CEO of Capital 507, one of the leading American BTC financing firms, told Coindesk on the 30th of June, that this reboot plan might actually be too tall an order for those who are involved in it. Braziel revealed to Coindesk that he himself has been a creditor of FTX. According to him, it is “good to see” this relaunch happening. However, when asked how probable the success of this project really looks, Braziel honestly answered that despite the chances increasing with time since the downfall of FTX, the actual probability of this project’s success is, according to him, around 20-30%, and definitely below 50%. The CEO said in the interview that if the FTX relaunch is done constantly with some capital put into it, similar to how Celsius did, then they would definitely be interested in this relaunch project. However, the probability of this still appears to be on the lower side, clarified CEO Braziel.
As popularly or unpopularly known amongst the majority of Bitcoin users, FTX, one of the major BTC exchange companies of the lockdown period, collapsed in 2022. This happened after Founder Sam Bankman Fried had suffered eight criminal charges against him for allegedly committing fraud and theft of FTXs resources. Friedman had been illegally using FTXs money for not only personal use, but also to fund projects and functions of his other companies, that too without keeping any records of these unethical and fraudulent transactions.
FTX was one of the leading BTC exchanges from 2019, until its recent downfall in November of 2022. The collapse of FTX had therefore caused a huge commotion in the BitCoin Market, as the company’s sudden bankruptcy caused heavy losses to its customers. Overall, it is speculatively possible that CEO John Ray and the FTX team see a reboot as the best possible way of ensuring satisfactory compensation and repayment for all the creditors of FTX.
However, FTX is still missing major funds amounting up to a figure of about $2 billion. Alleged acts of customer fraud done by key leadership at FTX have made the reclamation of missing funds even more difficult for the team. FTX even sued Former Regulatory Officer Daniel Friedberg on June 27, for apparently bribing possible whistleblowers as well as for administering fraudulent transfers and loans. Despite all of these ongoing proceedings and complications, FTX’s legal team told CoinTelegraph in the month of April 2023, that they are expecting the relaunch to be completed and released latest by the second quarter of the next year 2024.
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