The bankrupt crypto exchange FTX’s revival plans could soon become a work in progress as new CEO John Ray III is working on a reboot plan as per the latest court filings.
In a new court filing on May 22 reviewed by Cointelegraph, the FTX team shared a compensation report highlighting the work done by Ray in regard to the Chapter 11 bankruptcy. The review report mentioned a series of activities undertaken by Ray to ensure the debtor’s best interests. However, what caught the most attention of the crypto community was the mention of rebooting FTX.
Ray first talked about rebooting the troubled crypto exchange in January earlier this year. At the time news reports suggested that the bankrupt crypto exchange had discovered $5.5 billion in liquid assets and the new CEO was working with creditors on a revival plan. With no updates in the following month, the crypto community moved on. However, in April, another report suggested that the exchange has recovered $7.3B in assets and the FTX team is planning to restart the crypto exchange by the second quarter of 2024.
The latest court filing document suggests that a reboot plan is definitely under consideration. The court document highlighted that the new CEO has scheduled a series of meetings with creditors and debtors throughout the past month.
FTX CEO John Ray III confirms FTX 2.0 plans. pic.twitter.com/FeCXOvdrt0
— FTX 2.0 Coalition (@AFTXcreditor) May 22, 2023
Some of the key issues of the meeting involved planning for structuring the exchange, reviewing plans for restating the exchange, finalizing the material required for rebooting the crypto exchange FTX 2.0 as well as commenting on the FTX 2,0 bidder list. Going by the details of the document it seems FTX will be entering a bidding process.
The news about the FTX reboot also boosted the price of the native FTX token (FTT) which jumped by over 13% as the news about the relaunch became public.
FTT price movement on 1-hour time frame. Source: TradingView
The court document brought a new relief in the crypto community with many lauding the efforts of Ray for planning to revive the exchange that owes billions to its creditors. A popular crypto influencer that goes by the Twitter name of DegenSpartan claimed that FTX 2.0 could be the maximum path to recovery for all parties involved.
He noted that many creditors will sell so cheaply just to get out of those pools of assets and it could eventually turn the crypto exchange solvent again. However, not everyone was as keen on the reboot process as many claimed that the origin of the exchange itself was based on the fraud mindset.
A Twitter user said that allowing FTX exchange to resume operations would be absolutely sinister. “ FTX literally has blood on its hands from all the "plucking" they have done to our industry.”
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