New FTX CEO John Ray, who stepped in November to manage the bankruptcy situation, is forming the task force to restructure the Bitcoin exchange. The CEO stated that “everything is on the table” and if there is a way forward, FTX will explore it.
FTX CEO says Bitcoin exchange may be operational again
John Ray, who took over as CEO of cryptocurrency exchange FTX prior to the bankruptcy proceedings, has reportedly set up a task force to reactivate FTX.com. According to The Wall Street Journal’s January 19 report, John Ray is looking for ways to reboot FTX. The CEO said in his statements that he has formed a task force to investigate the relaunch of FTX.com, the company’s primary international exchange:
Everything is on the table. If there is a way forward in this regard, then we will not only discover it, we will make it.
FTX Token (FTT) skyrocketed after John Ray’s comments
After the last update, FTT’s native token, FTT, gained 37% in a few hours. The exchange token had lost more than 70% in just one week after its bankruptcy in November. FTT is currently heading towards the $3.00 region. With the last rally, it has gained more than 250% since the beginning of the year.
Will FTX users get their money back?
FTX reported on Jan. 17 that its investigation identified roughly $5.5 billion in liquid assets, with more than $3 billion in debt to its 50 largest creditors. According to the FTX CEO, he evaluated feedback from some stakeholders who saw the exchange as a “fit business.”
The collapse of FTX and subsequent accusations against many of its executives caused a crisis in the crypto market in 2022. Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang have pleaded guilty to fraud charges, while denying multiple allegations against Sam Bankman-Fried. The suspect, who pleaded not guilty, is scheduled to appear in court in October to stand trial.
Press Release pic.twitter.com/rgxq3QSBqm
— FTX (@FTX_Official) November 11, 2022
On November 11, 2022, FTX filed for bankruptcy, leading to a significant decline in the crypto market. Investors, customers and lenders suffered losses of more than $10 billion from the crash. However, FTX announced on January 11 that it had reclaimed over $5 billion in funds consisting of cash, investments and liquid cryptocurrencies. According to the latest update by John Ray, the exchange will endeavor to refund its customers and creditors. There is no guarantee that a payment will be made at this time.
As quoted by Kriptokoin.com, SBF said in a post to FTX on the “pre-autopsy overview” on January 12 that it would be possible to refund customers with the funds on hand if the exchange “restarts”. The team handling the bankruptcy proceedings and Bankman-Fried openly disagreed over their approach to calculating FTX’s balance sheet, with the former CEO claiming that FTX USA was “fully solvency”.
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