According to recent legal documents, the new CEO of bankrupt crypto exchange FTX, John Ray, is working on a reboot plan that could soon become a reality. This plan would enable the revival of FTX.
John Ray’s work highlighted
According to recent court documents, the FTX team shared a compensation report highlighting CEO John Ray’s work during the Chapter 11 bankruptcy. The report listed several activities Ray has undertaken to advance the debtor’s interests. Notable, however, was the mention of the FTX reboot, which caught the attention of the crypto community.
Ray first reported the reboot of the tumultuous crypto exchange in January. At the time, news sources reported that the bankrupt exchange had discovered $5.5 billion in liquid assets as the new CEO worked with creditors on a revival plan. In April, another report suggested the exchange had recovered $7.3 billion in assets, and the FTX team plans to relaunch the exchange by the second quarter of 2024.
The latest court document shows that a restart plan is being seriously considered. The document highlighted that the new CEO has scheduled a series of meetings with creditors and debtors over the past month.
Discuss structuring the exchange
During the meetings, some key topics were discussed, including structuring the crypto exchange, reviewing plans for the exchange’s relaunch, and finalizing the necessary materials for the crypto exchange’s reboot as FTX 2.0. According to the court document, it appears that FTX will soon enter a bidding process.
News of the FTX relaunch also had a positive effect on the price of the native FTX token, which rose more than 13% once news of the relaunch was made public.
The court document brought relief to the crypto community, with John Ray’s efforts to revive the exchange, which owes billions to creditors, garnering much praise. Well-known crypto influencer on Twitter, DegenSpartan, suggested that FTX 2.0 might be the most optimal path to recovery for all parties involved.
He argued that many creditors would sell their assets at low prices to get out of that liquidity, which could ultimately restore the crypto exchange’s solvency. However, not everyone was thrilled about the restart process, as some argued that the origin of the exchange itself was based on fraudulent practices.
One Twitter user expressed his lock to assure about resuming FTX’s operations, calling it a sinister move. “FTX literally has blood on their hands from the way they have ‘stripped down’ the industry,” said the user.