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  • Writer's pictureJamal Saafir

FTX May Rise From The Ashes

According to a report from BeInCrypto, the once revered, now fallen FTX, is in the midst of discussions to resurrect its trading platform.

The crypto exchange previously fell into bankruptcy, enveloped by accusations of fraud. Three parties have taken an interest in restarting the exchange and have presented their proposals to accomplish this goal.

Kevin M. Cofsky of Perella Weinberg Partners, the investment banker representing FTX, disclosed during a recent court hearing in Wilmington, Delaware, that FTX will determine resolutions for the path forward by mid-December.

FTX is thoroughly assessing potentially binding offers from investors to determine the most practical path to revive the cryptocurrency exchange.

Among the available options, offering the entire crypto exchange for sale is being considered. FTX possesses a financially noteworthy customer list of more than 9 million. As another option, a collaboration could materialize to restart the exchange, or FTX could push to do so solitarily.

Since its bankruptcy filing last year, the mission to raise capital for creditor repayment has been nonstop. According to court documents, FTX administrators have recouped roughly $7 billion in assets, with $3.4 billion in crypto.

Main creditor groups have come to provisional settlements over some crucial disputes in the case. These developments lay the path for filing a detailed payout plan in December, company attorney Andrew Dietderich disclosed.

FTX’s founder, Sam Bankman-Fried, who stepped down as CEO last year amidst the financial fallout, is facing trial in New York. The charges allege the diversion of FTX customer funds into Alameda Research for high-risk trading, political contributions, and extravagant property acquisitions before the fated collapse of both entities.

These unfolding negotiations serve as a beacon of hope amidst a formidable backdrop as FTX works to overcome past failures, seeking the best approach to revive the exchange.

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