Bankrupt cryptocurrency exchange FTX's revival plans may soon become a reality, as new CEO John Wray is laying out plans for a restart, according to the latest court filings.
In a May 22 court filing reviewed by Cointelegraph, the FTX team shared a compensation report highlighting the work Ray did during his Chapter 11 bankruptcy. The review mentioned a series of activities that Wray carried out to ensure the best interests of debtors. However, the mention of restarting FTX caught the attention of the crypto community.
Ray first spoke about restarting the struggling cryptocurrency exchange in January. At the time, news reports said the bankrupt cryptocurrency exchange had discovered $5.5 billion in liquid assets and that the new CEO was working with creditors on a turnaround plan. In April, another report revealed that the exchange had recovered $7.3 billion in assets, and the FTX team planned to restart the exchange by the second quarter of 2024. The latest court filings suggest a restart plan is definitely under consideration. Court documents highlight that the new chief executive has scheduled a series of meetings with creditors and debtors over the past month. Some of the key topics of the meeting involved planning for building an exchange, reviewing plans to restart an exchange, and finalizing the materials needed to restart a crypto exchange as FTX 2.0.According to the document, it appears that FTX will enter a bidding process.
News of the FTX reboot also pushed up the price of the native FTX token, that number jumped more than 13 percent as news of the reboot became public. The court filing came as a relief to the crypto community, with many applauding Ray's efforts to revive the exchange, which owed billions of dollars to creditors. Popular Crypto Twitter influencer DegenSpartan claimed that FTX 2.0 may be the best path to recovery for all parties involved. He said many creditors would sell at a low price just to get rid of these asset pools , which could end up becoming solvent again for cryptocurrency exchanges. However, not everyone is keen on the restart process, as many claim that the origin of the exchange itself was based on a fraudulent idea.
One Twitter user said allowing FTX to resume operations would be a sinister move. "Literally blood is on FTX's hands for all the 'picking' they've done to our industry," the user said.
