FTX CEO Recommends Exchange Restart in New Compensation Report
Some people in the crypto world think that FTX 2.0 is a good idea, but others aren’t sure because of technical problems.
A new staffing and pay report filed with the United States Bankruptcy Court for the District of Delaware on Monday confirmed that the bankrupt cryptocurrency exchange FTX will be brought back online.
The paper shows that in April, acting CEO John J. Ray III spent a lot of time doing different things to come up with a plan to save the troubled cryptocurrency exchange.
Preparations for FTX 2.0
In January, two months after the exchange went down because of a serious lack of cash, the CEO said that FTX could be brought back. Ray’s job is to make sure that FTX’s creditors get as much money as possible. He said that he would think about restarting the exchange or selling off its assets, which would bring in more money.
Last month, FTX got back about $7.3 billion in assets that could be distributed. The exchange’s lawyer, Andy Dietderich, said that the legal team would talk about next steps for a possible restart and file a basic reorganization plan in July. He also said that the plan was likely to be approved in the second quarter of 2024.
A few days later, it was said that Tribe Capital, a venture capital company in San Francisco, was thinking about starting a $250 million fundraising campaign to help FTX get back up and running. Tribe plans to lead the round with $100 million from itself and limited partners, according to reports. Arjun Sethi, the CEO of the company, has already met with FTX’s group of unsecured creditors to talk about the deal.
In the most recent court filing, there are hints about plans to start up the exchange again. In the past month, Ray has spent more than six hours on matters linked to the exchange. Some things to do are to look over the steps and documents and give feedback on the list of FTX 2.0 bidders. A bidding process would be part of the plan to reorganize the market.
Crypto Community Division
Reports about the revival of FTX are based on hypothetical statements and rumors based on information from inside the company, since neither Ray nor the committee of unsecured creditors has released a clear plan for the project.
Some people in the crypto world think that FTX 2.0 would be the best way for everyone to get back on their feet, but others aren’t so sure. Clients who worked with the company before it went out of business said it didn’t do well because of high delay, bugs in the traders’ application programming interface (API), and coding problems.
