2023-01-21 10:00:00

Crypto Exchange Could Restart, New FTX Chief

Bankrupt cryptocurrency exchange FTX’s new CEO, John Ray, is looking into the potential of restarting the platform, and he could bring the company back


According to him, the task force he established is looking into restarting FTX.com to “recover more value” for those who lost money, as the Wall Street Journal (WSJ) reported.


FTX was valued at $32 billion (£26 billion) a year ago, but in November, it filed for bankruptcy protection.


According to estimates, funds worth an estimated $8 billion still needed to be included.


Sam Bankman-Fried, the exchange’s founder and former CEO, has been charged with scamming investors and consumers to cover debts accrued by his cryptocurrency-focused hedge fund, Alameda Research.


He’s denied the allegations of fraud.


Customer funds’ future, however, is still unknown.


According to the WSJ report, Mr. Ray, who described the platform as a “complete failure,” is considering reviving it rather than just selling it or liquidating its assets.


The BBC contacted FTX for comment but did not react immediately.


Earlier, Mr. Ray criticized the management of the defunct cryptocurrency exchange, claiming he had never “seen such a catastrophic collapse of corporate governance.”


In his 40-year career, which included managing the collapse of US energy juggernaut Enron, he claimed that what he had discovered since taking over FTX was “unprecedented.”


The “Crypto winter.”


One of the significant incidents in what has been called a “crypto winter” for businesses was the collapse of the exchange.


The first major surprise was the collapse of two Terraform Labs-owned coins, Terra Luna and TerraUSD, in May of last year.


The decline caused the value of numerous other cryptocurrencies, including Bitcoin, to drop by $400 billion (£318 billion).


Interpol sent a red notice to law enforcement agencies in September requesting the detention of Terra founder Do Kwon.


With the collapse of FTX, one of the largest exchanges and the point of entry for millions of people, the disruption to the cryptocurrency industry reached a new level in November.


It was regarded as one of the most reliable platforms, but it quickly went bankrupt once it discovered its finances were precarious.


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