The new management team of FTX, which went bankrupt last year, in its recent report, claimed that they have made a lot of progress securing assets and recovered $7 billion in liquid assets so far. Last year, in a dramatic series of events, multi-billionaire crypto exchange company FTX led by Sam Bankman Fried filed for bankruptcy which sent massive shockwaves across the crypto industry. It was followed by SBF resigning from CEO of FTX and his arrest in money embezzlement and mishandling of consumer funds charges against him.
Court appointed John Ray as interim CEO of FTX considering his remarkable track record of leading a company out of bankruptcy previously. Since then, John Ray has been navigating his way through to make the recoveries possible and bring the crypto giant back to the market.
According to the second investigative report released by FTX debtors, they have been able to recover over $7 Billion in liquid assets till now. However, FTX exchange owed its customers approximately $8.7 billion when filing for bankruptcy last year. Approximately $6.4 Billion, which accounts for 74% of the debt, was misappropriated fiat currency and stablecoins, as per the recent investigative report.
The report marks allegations on the former management and senior lawyers of FTX of commingling with consumer funds and engaging in suspicious activities like falsifying documents and relocating FTX jurisdiction to dodge detection. Ray, the man leading the recovery process, alleged that the narrative created by FTX of being a consumer-centric company was nothing but a façade for a long.
Is FTX planning to relaunch?
There have been rumors that the exchange will restart as FTX 2.0. Attorneys for FTX, have been exploring the possibility of relaunching the company back to the landscape. The exchange’s legal team tried to assess tax issues, and cybersecurity implications and tested user experience.
While how people perceive and look up to the reincarnation of the legendary into the market will be something to watch out for. However, it is difficult to imagine people very happy to use FTX considering the flashbacks. Sam Bankman-Fried in that sense damaged the reputation of FTX forever.
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