FTX has returned $7,3 billion in assets and is considering restarting the exchange

The platform’s lawyer stated that a decision to reopen could be made this quarter

13.04.2023 - 07:20

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2 min

What’s new? The bankrupt crypto exchange FTX has recovered about $7,3 billion in liquid digital assets and cash. The lawyers representing it, Sullivan & Cromwell, announced this at a court hearing on April 12. The platform’s attorney, Andy Dietderich, also said FTX is in talks with interested parties about relaunch options and could make a decision this quarter. It is not yet clear whether FTX funds will be used to pay customers back or restart. According to the attorney, the relaunch may require outside financing or a sale of the exchange’s assets.

Material by Reuters

How is the FTX situation developing? According to Dietderich, so far FTX customers in Japan are the only ones who have been able to withdraw funds because that country has relatively strict cryptocurrency regulations. FTX Japan resumed withdrawals for local clients in late February. In March, the European division launched a withdrawal application site, at the same time lenders reported on the possible restart of the exchange.

Lawyer said FTX would need significant capital to restart because the existing user interface did not reflect the actual flow of funds. “The app worked beautifully, but in truth it was a facade,” he added.

FTX is also working on a preliminary plan to get out of bankruptcy, which it plans to submit by July. The lawyer noted that there are a lot of details to work out as part of it, as creditors will fight for their share of the assets. FTX does not expect the plan to be approved until the second quarter of 2024.

Earlier, former FTX senior executive Zane Tackett called for the relaunch of the exchange. He believes the new platform should offer a similar suite of products, as well as a marketplace for trading claims on the exchange with debt tokens. Tackett acknowledged that there could be complications due to the use of funds intended for creditors, as well as increasing regulatory pressure in the United States.

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