FTX reportedly wants to relaunch its exchange amid ongoing legal fallout from its collapse.
CEO John J. Ray III told The Wall Street Journal (WSJ) Wednesday (June 28) that the cryptocurrency company “has begun the process of soliciting interested parties to the reboot of the FTX.com exchange.”
A June 22 court filing showed that at least 363 “sales parties” are interested in buying the brand and bones of FTX and have gone as far as signing non-disclosure agreements seeking more details about the restructuring and possible reboot of the exchange.
Among the notable names listed in the filing were Nasdaq, BlackRock, Robinhood, and crypto firms Ripple Labs, Galaxy Digital and OKCoin.
At one time one of the largest crypto exchanges, FTX filed for bankruptcy in November after customers pulled billions of dollars in funds, triggering a liquidity crisis. When the company collapsed, it sent shockwaves through the sector, leading to greater scrutiny from regulators.
The collapse also led to criminal charges against former CEO Sam Bankman-Fried, accused of multiple counts of fraud and conspiracy. He has pleaded not guilty and remains free on bail.
News of FTX’s possible resurrection came one day after a court denied motions to dismiss 10 of the 13 counts against Bankman-Fried, who is set to go to trial in October.
This week also saw a report from FTX’s current executives which accuses Bankman-Fried and a top lawyer for the company of repeatedly lying to banks and auditors, missing false documents and helping FTX and affiliates move between jurisdictions to escape oversight and create an operational “mirage.”
The FTX Debtors have thus far recovered $7 billion of the roughly $8.7 billion in customer-deposited funds which were misappropriated from the FTX.com exchange.
The report also contended that top FTX executives — and insiders including Bankman-Fried and Alameda Research CEO Caroline Ellison — knew their operation was insolvent months before FTX imploded.
Ellison had estimated in private notes from March 2022 that FTX.com had a cash deficit alone of more than $10 billion, much of it in the form of fiat currency and stablecoins that had been misappropriated.
She has since pleaded guilty to her role in FTX’s downfall and is cooperating with prosecutors.
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