Is Bankrupt FTX Exchange Looking For A Comeback?

FTX News: If the monthly fee filings by FTX’s lawyers are of any indication, the management is investigating concerns surrounding a possible relaunch of the defunct crypto exchange. The fees which include tasks on taxes, security, user experience as well as considering “long-term options” for the exchange were billed at roughly $13.5 million for the month of February.

FTX Crypto Exchange To Reboot?

As previously reported on CoinGape, in an effort to reclaim value for creditors and consumers, new FTX CEO John J. Ray III had declared his intention to investigate the possibility of relaunching FTX.com, the company’s primary international exchange. Even though Ray, who has spent years rehabilitating and driving firms like Enron Corp. through their tumultuous bankruptcy process, has labeled FTX as the biggest failure of corporate governance in his professional timespan.

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Moreover, Ray claims that despite the fact certain top executives at FTX have been charged with illegal activity, a multitude of customers have commended the company’s technology and proposed there might be some merit in rebooting the platform. As reported by Bloomberg, reviving the crypto exchange — which used to be one of the world’s largest digital asset trading platforms — would be preferable to just selling its assets at an extremely low price.

February’s Fee Statement Hints At Relaunch

A fee statement from the month of February indicates that attorneys for FTX worked on a range of problems connected to the initiative. In one of the notes, it is said that an investigation into “potential security risks re: potential FTX exchange reboot” was carried out. Another mentions interacting with Sygnia Inc., the security firm that advised FTX after the platform was hacked following its bankruptcy in November, on potential reboot concerns.

For tax matters, lawyers exchanged emails and letters with Ray. One of the fees covered the cost of analyzing the possibility of re-establishing the exchange as well as the accompanying tax repercussions. Conversations with advisors regarding the  “development of mock-up exchange to evaluate user experience” were among the other duties that were to be evaluated in the month of February.

Will FTX Get Its Glory Days Back?

It is not known at this time if the new management team at FTX will eventually proceed with reinstating the exchange. Things remain blurred as the restart could be hinted towards an effort to process withdrawals or even a broader effort to relaunch the entire business, which was once run by Sam Bankman-Fried — who apart from other miscreancies allegedly joked with fellow associates about misusing crypto funds to the tune of $50 million.

In the wake of this FTX news, the broader crypto community has reacted quite ambiguously as the feedback has been rather varied. The cryptocurrency market has never witnessed an attempt like this before, and the most recent bankruptcy claims-based OPNX exchange — initiated by the founders of the now defunct 3AC hedge fund — received a dismal level of participation than expected; thus demonstrating a lack of faith in the platform. The exchange was reported to have limited trading activity, with only two transactions totaling $1.26 across all spot and derivatives markets upon launch.

Also Read: Is BinanceUS Next FTX? Why SEC Is After Crypto Exchange Binance?

The post Is Bankrupt FTX Exchange Looking For A Comeback? appeared first on CoinGape.

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Pratik Bhuyan
CoinGape