According to a report from The Wall Street Journal, the new CEO and chief of the bankruptcy proceedings for FTX, John Ray, is thinking about relaunching the platform. The executive is exploring options to re-launch the trading venue and raise money to repay its customers.
Ray appointed a task force to look into the possibility of restarting the international arm of the failed crypto exchange. The bankruptcy proceeding is trying to explore every option to raise money and provide value to the company’s customers.
FTX Has Two Options, Customers Will Get Their Money Back?
The FTX CEO has found several assets and companies owned by the failed company. The new management could sell these assets to get cash, but John Ray believes there is a possibility of getting more value by simply re-launching these venues.
The executive has yet to provide more details about this possibility; the bankruptcy proceedings prioritize the clients. However, these processes could take years and often fail to make customers whole. John Ray told the Wall Street Journal the following regarding a possible FTX relaunch:
Everything is on the table. If there is a path forward on that, then we will not only explore that, we’ll do it.
In addition, Ray called out Sam Bankman-Fried (SBF), the founder and former CEO of the crypto exchange. SBF pleaded not guilty to wire fraud and conspiracy to commit wire fraud and denied his involvement in the billion-dollar scheme that resulted in a massive loss for his customers.
SBF was extradited from the Bahamas and placed under the custody of his parent after posting collateral for a $250 million bail. Since his apprehension, the FTX has been public on the case, and he intends to “do everything “ for his customers. So far, he has failed to meet this commitment.
On SBF, Ray said: “We don’t need to be dialoguing with him. He hasn’t told us anything that I don’t already know.”
According to the WSJ, the FTX Founder replied: “This is a shocking and damning comment from someone pretending to care about customers.”
As mentioned, SBF allegedly took billions from its customers and lent it to FTX’s trading arm, Alameda Research. The former CEO of this company, Caroline Ellison, and the former FTX CTO, Gary Wang, is cooperating with U.S. authorities. Both pleaded guilty to several charges, including fraud.