FTX Reboot is Coming Soon, CEO is in Talks with Multiple Parties
- The reboot of bankrupt crypto exchange FTX is coming soon, as per CEO John Ray III.
- The new firm will not be named FTX 2.0 but will be an entirely new brand with a new name.
- Potential bidders have to submit Letters of Intent and have the end of the week to do so.
- Blockchain lending firm Figure is one of the firms that have shown interest in the reboot.
The revival of crypto exchange FTX, which filed for bankruptcy in November 2022 under the leadership of Sam Bankman-Fried, also known as SBF in the crypto space, is on the horizon, as the current CEO and chief restructuring officer, John Ray III, stated that the firm had “begun the process of soliciting interested parties for the reboot of the FTX.com exchange.”
As per a report from the Wall Street Journal citing sources familiar with the matter, the FTX crypto exchange is in talks with multiple parties to finance the reboot of the firm. One of the parties that has shown interest in financing the firm’s reboot is blockchain lending company Figure. More importantly, the potential bidders have to submit Letters of Intent and have the end of the week to do so.
The Letters of Intent must contain the terms and conditions of their participation. It is also crucial to note that the creditors of the crypto exchange will be offered a stake in the FTX reboot, among other forms of compensation.
It was stated that the “talks include possible compensation for certain existing customers, possibly by offering them stakes in any reorganized entity.” Customers can also get recovery and/or equity tokens in FTX 2.0.
It is clear that the current CEO and other officials at the crypto exchange believe that the best way for customers and creditors to receive the best outcome of their investments is to restart the crypto exchange FTX. Another important fact to mention here is that the reboot of the firm will not be named “FTX 2.0” or something like that. It will be an entirely new brand with a new name, as per the WSJ.
As per recent reports, the bankrupt crypto exchange still has a $2 billion hole in its balance sheet, and recently, in order to pay the creditors, the firm decided to sell its stake in AI startup Anthropic. Although a number of buyers were interested in purchasing the stake, the exchange backed out stating that it expects its stake to reach “nine figures” in the near future.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
