Friday, May 24, 2024

FTX has recovered $7.3B in assets, will consider plans to reboot exchange

HOT NEWS! FTX has recovered $7.3B in assets and will consider rebooting the exchange. Sam Bankman-Fried’s failed cryptocurrency exchange filed for bankruptcy in November 2022 has been mired in court proceedings. Representatives of FTX said that the crypto firm had recovered roughly $7.3 billion in liquid assets. FTX filed for bankruptcy protection in November after customers started removing funds from the exchange. A March filing from the debtors reported the four FTX company silos had roughly $4.8 billion in scheduled assets as of November 2022, with an investigation into the assets ongoing. A target plan timeline presented in court about the possible reopening sees an initial plan being filed in the third quarter. 

So, FTX has plans to restart its crypto exchange operations sometime in the second quarter of 2024 which suggests a reboot as early as April. FTX CEO John Ray III brought up the idea in January. CEO of FTX, John Ray was reportedly mulling reviving the bankrupt exchange in a January interview. There was also an increase at the price of FTX Token from $1.32 to $2.80 almost near the time the lawyers announced the promising reboot of the exchange. This is an increase of more than 112%. The token price had largely stayed between $1 and $2 since the firm’s bankruptcy filing.

During the hearing, the bankruptcy judge denied a motion where the court would prioritize reimbursing former FTX CEO Sam “SBF” Bankman-Fried’s legal fees. There was a door left open for SBF to present evidence to the court in the future regarding the motion. The bankruptcy court proceedings were followed by the debtors’ announcement that a Swiss court had granted a petition allowing the sale of FTX Europe AG, the firm’s European arm. Lastly, FTX Europe AG, along with 133 other subsidiaries, was part of FTX’s Chapter 11 filing in U.S. bankruptcy court in November 2022. Stay tuned for more hot news! 


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