Bankrupt cryptocurrency exchange FTX is considering a future reopening, according to its lawyers from Sullivan & Cromwell, who said this during a court hearing on Wednesday. Lead attorney Andy Dietderich told the Delaware bankruptcy court that the estate has recovered $7.3 billion in liquid assets, up from the $1.9 billion reported in January.
One option under discussion would allow FTX’s creditors to convert a portion of their holdings into a stake in a revived exchange. Dietderich explained, “There are possibilities that customers could have the option to take part of their proceeds that they would otherwise receive in cash from the estate and receive some kind of an interest in the exchange going forward.” He emphasized, however, that restarting FTX is only one of many possibilities and that no final decisions have been made. “There are as many opinions on this, I think, as there are professionals involved in this case. And that’s a lot,” he added.
Following the news, FTX’s FTT token more than doubled in price. The exchange collapsed last November, and its former CEO Sam Bankman‑Fried was indicted on fraud and conspiracy charges for allegedly misappropriating billions of customer funds to cover losses at his hedge fund Alameda Research, violating campaign‑finance laws and bribing Chinese authorities. He has pleaded not guilty to the charges.
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