New FTX management start searching for investors to relaunch the exchange

The platform’s top management has been exploring options for this plan since January

28.06.2023 - 12:45

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3 min

What’s new? The new CEO of the bankrupt crypto exchange FTX, John J. Ray, said that the company “has begun the process of soliciting interested parties to the reboot of the FTX.com exchange,” WSJ reports. The firm is in talks with investors to support the potential launch of FTX through structures such as a joint venture, the publication’s sources said.

The WSJ’s material

What happened before? Ray was appointed head of the exchange as part of the bankruptcy proceeding that began last November. In January, he said that he set up a task force to explore options for a restart. In April, an attorney for FTX also said that a final decision on the matter could be made by the end of the quarter. The media later reported on plans by venture capital firm Tribe Capital to raise $250 million to participate in the FTX relaunch.

Former FTX senior executive Zane Tackett also proposed restarting the exchange and launching debt tokens to trade claims against it. Meanwhile, former exchange partner and CEO of investment firm SkyBridge Anthony Scaramucci questioned the possibility of restarting FTX because of the bear market.

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The exchange recovered $7 billion in client assets in June, compared with a total of $8,7 billion owed to them. As advocates have previously noted, if the relaunch is approved, its funding could come from those funds, among other things. And with the rising costs of bankruptcy proceedings, some creditors are leaning toward this option because a successful relaunch would increase the amount of money available for distribution to them.

Thus, in three months FTX paid over $121 million to advisors, and in May the US Internal Revenue Service through the court demanded from the exchange $44 billion.

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