FTX, the crypto exchange founded by Sam-Bankman Fried (SBF) and his friends, collapsed with a lot of noise last year and filed for bankruptcy in the U.S. Apparently, many billions disappeared. Most recently, we reported that CySEC-regulated FTX Europe had resumed customer payouts to its European clients. CySEC recently extended the suspension of FTX Europe until September 30, 2023. The main website FTX.com is no longer operational, but this could change.
The company’s lawyers have said that the now-defunct FTX has recovered $7.3 billion of customer funds and could be restarted as a going concern as soon as next year. FTX collapsed spectacularly in November and is considering reopening at some point as it navigates bankruptcy, its attorneys from Sullivan & Cromwell said during a hearing at a Delaware bankruptcy court. One potential option discussed was to let FTX‘s creditors convert a portion of their holdings to a stake in a reopened exchange.
Andy Dietderich, the lead attorney for FTX, told the court that re-starting the exchange was one of many potential options being considered for the company’s future. The plan would require significant capital to be raised. “There are as many opinions on this, I think, as there are professionals involved in this case,” Dietderich said.
FTX has benefited from a recent rise in crypto prices, Dietderich said. Its total recovery would be valued at $6.2 billion based on crypto prices from November 2022, when it filed for bankruptcy. Since then, crypto prices have almost doubled.
