Here is some unexpected news: John Ray III, who took over the reins of FTX following its bankruptcy last November, is currently evaluating the possibility of reviving the FTX.com group. According to him, it is a question of knowing what would best allow the reimbursement of injured customers between this hypothesis and the sale of the company’s subsidiaries. The price of FTT gained more than 40% in stride.
The return of FTX possible?
John J. Ray III, the new CEO of FTX in place since the exchange’s bankruptcy and the withdrawal of Sam Bankman-Fried, claims to have set up a working group dedicated to the relaunch of the FTX.com group. According to him, although some individuals in key positions in the company may have carried out reprehensible actions, the fact remains that FTX has a certain potential.
Indeed, before the company’s calamitous management came to light, FTX was the second largest cryptocurrency exchange in the world, and unanimously enjoyed the status of the main rival of the giant Binance.
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John Ray III has some expertise in the restructuring of bankrupt companies, since he himself actively participated in the reimbursement of the creditors of the energy giant Enron Corp in the early 2000s. Amounts to be repaid which then reached 10 figures, just like the sum of the debts due from FTX today, although the precise amount of the latter remains unknown to this day.
Still, the latest news, the sums collected so far by the new management of the exchange come to shed some light on this dark picture. Sure enough, at the start of the month, FTX was reporting over $5 billion in recovered assets, much more than originally envisaged.
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Reimbursement of injured customers as an objective
According to the new CEO of FTX, the decisive element in this decision-making will be the reimbursement of injured customers of the exchange. Thus, the question will be to know what will generate the most financial value between a restart of FTX or the sale of the group and its subsidiaries.
“Everything is on the table. If there’s a way forward on this, then we won’t just think about it, we’ll do it. […] We work with stakeholders who have identified what they consider to be a viable business. »
The whole thing will however be to manage to restore a little order in the books of FTX. According to Mr. Ray, who says he has never seen this in his entire career, Sam Bankman-Fried and his associates sometimes kept no record of multi-million dollar transactionswhich the CEO also describes as “ spending spree “.
The current FTX teams, which have been extensively overhauled, are currently passing more than thirty terabytes of data belonging to FTX with a fine-toothed comb in the hope of getting their hands on new assets. They would also have managed to get their hands on several wallets of the exchange just in the last week.
The market reacted strongly to the announcement, since the FTT, the utility token of the bankrupt exchangewas able to carry out an intraday rally of the order of + 40%.
Figure 1 – Evolution of the FTT price on the day of January 19
At the time of writing, the FTT price is around 2.24, which reflects an increase of almost 140% in its value over the last 30 days. However, it remains far from its highest price (ATH) of 84 dollars reached at the beginning of September 2021.
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Source: Wall Street Journal
Chart source: TradingView
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