FTX Is Considering Using Creditor Money to Restart Crypto Exchange
- FTX HAS RECOVERED $7.3 BLN IN ASSETS ( THANKS TO BTC PULLING A 2x SINCE THEIR BANKRUPTCY ) FTX WILL CONSIDER RE-STARTING IN Q2 2023
- Exchange would require significant amount of cash, lawyer says
- Discussions about exchange restart are still in early stages
FTX may use money marked to repay customers to restart its failed crypto exchange because the project would require a significant amount of cash, a lawyer for the company said in court Wednesday.
The company is still in the early stages of deciding whether to bring back the exchange, which allowed customers to trade digital assets before FTX collapsed, Andrew G. Dietderich, an FTX attorney with law firm Sullivan & Cromwell told US Bankruptcy Judge John T. Dorsey.
“There are as many opinions on this as there are professionals in this case, and that’s a lot,” Dietderich said.
The original FTX trading app was a “facade” that was more like a video game than a professional, properly functioning exchange, Dietderich said in court.
Funds needed to restart the exchange could come from third parties willing to invest in the project, or FTX could use some of the $7.3 billion worth of cash, crypto and other assets it has so far collected, he said. That money is being held until FTX wins final court approval for a creditor payout plan, something that is unlikely until next year, Dietderich said.
The case is FTX Trading Ltd., 22-11068, U.S. Bankruptcy Court for the District of Delaware.
It would be bigger surprise for Crypto world if FTX comes back to life. About $7.3 billion worth of amount has already been recovered. FTT token is up 100% today. If LUNA also comes back, that would help improve the Crypto investors confidence. Please let us know what you think of it.
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