FTX, the crypto exchange that collapsed in November 2022, is planning to reopen if it can raise significant capital. Its attorneys from Sullivan & Cromwell said in a court hearing on Wednesday, lighting up hope for FTT token in particular and the global crypto community in general.
Another notable option discussed was to let FTX’s creditors convert a portion of their holdings to a stake in a reopened exchange.
Andy Dietderich, FTX’s lead attorney, said to the court that reopening the exchange is one of many potential options the company is considering. To do this, significant capital is required and there was internal debate over whether that capital should come from FTX real estate or a third party. Customers can choose to take part of their proceeds in cash from the estate and receive some kind of an interest in the exchange going forward, added Dietderich.
The attorney continued to emphasize that restarting FTX is only one of many possibilities and the final decision has not yet been made. FTX’s attorneys also said that they had successfully recovered $7.3 billion in liquid assets, including $2 billion in cash, $4.3 billion in crypto, $300 million in securities, and $600 million in investments, etc. However, these assets will be frozen, pending court approval of a customer payment plan. As of early March 2023, FTX has recovered $6.1 billion in assets and recently invested $460 million in Modulo Capital.
FTX’s FTT token has more than doubled following the news. FTT has peaked at 3 USD, and is trading around the $2.50 mark. In an interview with the Wall Street Journal earlier this year, CEO who took over the FTX exchange, John J. Ray III, said he was looking into the possibility of reviving the bankrupt crypto exchange. At that time, FTT price also had a similar positive reaction.
