Indeed, FTX ‘s lawyers at Sullivan & Cromwell presented a scenario for the crypto exchange to restart in court. A hypothesis that would require, however, to first raise capital.
A reorganization plan regarding a possible reopening of the crypto exchange could be presented next July in order to be validated by the bankruptcy judge in charge of the case.
To make such a hypothesis possible, however, conditions should be met, stresses the lawyer. The most important would be to raise sufficient funds. After such a fiasco and despite the departure of the directors, can a new FTX still hope to convince investors and clients?
Success is far from being guaranteed. Moreover, lawyer Andrew Dietderich says that the company is only at the beginning of its reflection on a possible restart of the platform and a reopening of trading for its customers.
There are as many opinions on the issue as there are professionals in this case, and that’s a lot,” the lawyer said wryly. The return of the undead of the crypto is far from unanimous among his councils.
An announcement that caused a sharp rise in the FTT price, which jumped to 3 dollars.
As for the financial assets that could be recovered by the new FTX management team, $7 billion in various assets (cash, cryptocurrencies, …) could be collected.
The value of the crypto assets based on the price of Bitcoin (BTC) and other crypto currencies held by the failed crypto exchange that owes billions of dollars to its users.
We will have to wait for the presentation of a revival plan for FTX before the bankruptcy court, which will then have to approve it before a concrete reopening of FTX in the future.
A revival that will perhaps be done under another name in order to erase the disastrous history of this crypto trading platform led to bankruptcy by its former CEO Sam Bankman-Fried who faces 115 years in prison.