According to a report from The Wall Street Journal, the new CEO and chief of the bankruptcy process for FTX, John Ray, is thinking about restarting the platform. Executives are exploring options to reopen the dealership and raise money to repay customers.
Ray appointed a task force to look into the possibility of restarting the international arm of a failed crypto exchange. The bankruptcy process tries to explore every option to raise money and provide value to the company’s customers.
FTX Has Two Choices, Will Customers Get Their Money Back?
The CEO of FTX has discovered several assets and companies owned by failed companies. The new management could sell the assets to get cash, but John Ray believes there is a chance to get more value by simply launching the board.
The executive has not given any further details about this possibility; client priority bankruptcy process. However, the process can take years and often fails to create a whole customer. John Ray told the Wall Street Journal about the possible launch of FTX:
Everything is on the table. If there is a path forward, then we will not only explore it, we will do it.
In addition, Ray mentioned Sam Bankman-Fried (SBF), the founder and former CEO of the crypto exchange. SBF pleaded not guilty to wire fraud and conspiracy to commit wire fraud and denied involvement in the billion-dollar scheme that caused huge losses to customers.
SBF was extradited from the Bahamas and placed in the custody of his parents after posting bail for a $250 million bond. Since his concern, FTX has been public about the case, and he wants it “Do it all” for our customers. So far, they have failed to live up to that commitment.
On SBF, Ray said: “We don’t need to talk to him. He’s not telling me anything I don’t already know.
According to the WSJ, the FTX Founder responded: “These are appalling and damning comments from someone who pretends to care about their customers.”
As mentioned, SBF allegedly took billions from customers and loaned them to FTX’s trading arm, Alameda Research. The former CEO of this company, Caroline Ellison, and the former CTO of FTX, Gary Wang, cooperated with the US authorities. Both pleaded guilty to several charges, including fraud.