FTX reboot is on the way: CEO in talks with ‘interested parties’ – report

Bankrupt crypto exchange FTX is one step closer to relaunching as an entirely new exchange.

as of June 28 reports To the Wall Street Journal, John Ray, FTX’s restructuring chief, said the company “has begun the process of soliciting interested parties to relaunch the FTX.com exchange.”

Sources familiar with the matter said the company is in talks with investors to finance a possible reboot. Blockchain lending company Figure is among the parties that have expressed interest in the process.

Cointelegraph contacted Figer but did not receive an immediate response.

Potential bidders reportedly have until the end of the week to file a letter of intent – a document outlining the terms and conditions of their participation.

Specifically, the sources said that current FTX creditors would potentially be offered a stake in the restructured crypto exchange, among other forms of compensation.

Significantly, “the talks include possible compensation for some existing customers, possibly by offering them a stake in a restructured entity”.

We expect clients to receive recovery and/or equity tokens in FTX 2.0.

— AFTX 2.0 Alliance (@AFTXcreditor) 28 June 2023

It is expected that FTX will not be named “FTX 2.0” or any other derivative of its original name and will instead choose to rebrand as an entity with a different name.

Overall, it appears that Ray and the rest of the FTX team view the reboot as the best possible way to ensure that creditors receive the best possible outcome in terms of payments.

FTX’s legal team said in April that they expected the launch of the new exchange to be completed in the second quarter of 2024.

Connected: Mainstream Media Challenges Decision to Protect FTX Customers: Report

According to a June 26 report on the recovery process, FTX still has a gap of about $2 billion on its balance sheet. Efforts to recover these missing funds have been further complicated by alleged misappropriation of client assets by key leadership at FTX.

Daniel Friedberg, a former FTX regulatory official who is understood to have appeared as an unnamed party in several legal proceedings, is alleged to have silenced potential whistleblowers as well as approving a series A lawsuit was filed on June 27 by FTX for allegedly giving “quiet money”. of fraudulent transfers and loans.

The report on the missing money also details a series of alleged investments in venture capital firms, a $243 million Bahamian real estate portfolio as well as several donations to non-profit organizations.

magazine: Bitcoin on a collision course with ‘net zero’ promises