In a recent court submission, the new chief executive of FTX, John Ray III, confirmed to formulate a reboot plan for the bankrupt crypto exchange. In April, Ray III developed a report outlining the staff’s requirements and compensation plan, which was crucial for FTX’s restructuring efforts.
In his report, the CEO admitted that he engaged in extensive research to evaluate the practical ways to restore the operation of the Bahamas crypto exchange. The CEO evaluated the effective procedure necessary for restoring the operation of FTX.
Will FTX Restore Operations?
Initially, before the liquidation of the crypto exchange, the firm was creating FTX version 2.0, which will be issued to investors. The FTX 2.0 material was awaiting the reviewing and finalization stage before being issued to the public.
The preliminary development of FTX 2.0 was documented in the “Summary of Time and Fees,” written by an author called Professional. The report revealed the CEO charged $1040 to review and finalize version 2.0 for less than an hour.
Reportedly the CEO confirmed seeking technical advice from leading cybersecurity firm Sygnia. During the engagement with Sygnia, Ray III evaluated crucial security tools to safeguard the trading platform from exploitation.
Also, the Sygnia team offered the CEO practical “term sheets” that will support FTX restructuring efforts. The data provided by the Sygnia team compelled the CEO to examine additional information from external sources.
Among the sources that Ray III reviewed included a report provided by an investment bank Perella Weinberg which outlined the reorganization plan. After obtaining the relevant information, the CEO contacted the investment bank to discuss further details on the reorganization plan.
Scope of FTX Reboot Plan
In his previous report, the CEO announced restoring the operation of FTX in January. He stated that the FTX stakeholders were working towards identifying promising opportunities the crypto exchange should pursue. The CEO announced that the crypto exchange had restored $5.5 billion from liquidity assets.
In a separate writing, the FTX boss confirmed to recover assets worth $7.3 billion. The successful recovery of FTX funds compelled the crypto exchange schedule for meeting with creditors and debtors to discuss the expected reboot plan.
In April, the FTX official engaged the key stakeholders to deliberate on the company restructuring plans. Commenting on the FTX proposal, the famous Twitter influencer DegenSpartan revealed that finalizing FTX 2.0 could redirect the firm to attain the restructuring goals to benefit all the stakeholders.
He predicted that FTX could regain its solvency if all the creditors could accept to sell their digital assets at a lower price to exit the crypto exchange common pool.
Reflecting on the previous court filing, attorney Andy Dietderich regretted that there were no effective ways to support the restructuring of FTX. He was still optimistic that the embattled crypto exchange could restore its operations.
Dietderich concluded that FTX restructuring efforts required the firm to raise the required capital to restore its US or global operations. Following the bankruptcy, it was observed that several bidders had submitted their proposals to acquire FTX assets.
The court filing revealed that the crypto exchange will engage in a bidding process in the coming days.
Review of FTX Court Proceedings
The bidder list included the famous venture capital firm Tribe Capital, among other crypto firms. A review of Tribe Capital’s proposal observed that the venture capital intended to raise $250 million to support FTX’s restructuring plans.
The Tribe Capital team proposed to launch a fundraising campaign to raise the required amount. After reviving the bankrupt crypto exchange, the Tribe Capital team proposed retaining the FTX name.
After the CEO revealed the crypto exchange rebooting plans, the FTX native token FTT has increased by 10% to trade at $1.11 in the last 24 hours. According to CoinMarketCap, FTT trading volume jumped by 414.27% to reach $28,999,389 in a day.
Correspondingly FTT market capitalization increased by 9.41% to exchange at around $363,257,849.
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