Home CryptocurrencyBitcoin FTX CEO Says He’s Exploring Exchange Restart: The Report

FTX CEO Says He’s Exploring Exchange Restart: The Report

by SuperiorInvest

John Ray, who took over as CEO of cryptocurrency exchange FTX prior to bankruptcy proceedings, has reportedly formed a task force to consider restarting FTX.com.

According to a January 19 report from the Wall Street Journal, Ray he said everything was “on the table” when it came to the future of FTX.com, including a potential path forward with an exchange reboot. FTX Trading, doing business under the name FTX.com, was one of approximately 130 FTX group companies that filed for Chapter 11 bankruptcy in November 2022.

Ray reportedly considered reviving the crypto exchange as part of efforts to make users whole. FTX reported on January 17 that it did identified roughly $5.5 billion liquid assets in its investigations, with the top 50 creditors owed more than $3 billion. According to the FTX CEO, he considered feedback from some stakeholders who saw the exchange as a “viable business”.

The collapse of FTX and the subsequent criminal charges against many of its executives caused a ripple in the crypto space in 2022. Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to fraud charges, while Ray’s predecessor Sam Bankman-Fried he has largely denied many of the allegations against him. He pleaded guilty and is scheduled to appear in court for trial in October.

Related: US authorities launched a page to inform alleged victims of FTX about the SBF case

Ray was allegedly assisted by Wang and Ellison in tracking some of the company’s assets, but often traded barbs with Bankman-Fried. The former CEO claimed he was pressured by law firm Sullivan & Crowell and FTX’s US general counsel to appoint Ray as a director of FTX before the firm’s bankruptcy. Ray also said Bankman-Fried no more has any role in the stock market and cannot speak for him.

“We don’t need to have a dialogue with him,” Ray reportedly said, referring to Bankman-Fried. “He didn’t tell us anything I didn’t already know.

In a Jan. 12 post on FTX’s “pre-mortem overview,” SBF said that if the exchange were to “restart,” it might be possible to refund customers with assets on hand. The bankruptcy team and Bankman-Fried have publicly disagreed on approaches to calculating FTX’s balance sheet with the former CEO claiming FTX US was “fully solvent”.

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