In a bid to revive FTX, CEO John Ray has initiated discussions with potential investors keen on financing the exchange’s reimagined future.
The bankrupt cryptocurrency platform, FTX, is edging closer to a complete overhaul as it prepares to relaunch as a brand-new exchange.
According to a report by The Wall Street Journal on June 28, FTX restructuring chief John Ray has begun the process of reaching out to interested parties to gauge their interest in the reboot of the FTX.com exchange.
Insiders familiar with the matter revealed that the company has been engaged in talks with investors regarding funding for this potential relaunch. Notably, Figure, a blockchain lending company, has expressed its interest in the process.
Cointelegraph attempted to contact Figure for comment but did not receive an immediate response.
Reportedly, prospective bidders have until the end of the week to submit Letters of Intent, which will outline the terms and conditions of their involvement.
Significantly, sources indicate that current FTX creditors may be offered a stake in the restructured cryptocurrency exchange, along with other forms of compensation.
Interestingly, it is expected that FTX will not retain its original name, “FTX 2.0,” or any other variation, but instead opt for a rebranding with a different identity.
FTX Team Sees Reboot as Best Strategy for Creditor Repayment Success
Overall, it appears that Ray and the FTX team view a reboot as the most viable approach to ensuring optimal outcomes for creditors in terms of repayment.
FTX’s legal team had previously stated in April that they anticipate completing the launch of the new exchange sometime in the second quarter of 2024.
In a report concerning the recovery process on June 26, it was revealed that FTX still faces a significant deficit of nearly $2 billion. The efforts to recover these missing funds have been further hampered by allegations of misappropriation of customer assets by key FTX executives.
Daniel Friedberg, a former regulatory officer at FTX who is believed to have played a role in several legal proceedings, was sued by FTX on June 27 for allegedly orchestrating “hush money” payments to silence potential whistleblowers and authorizing fraudulent transfers and loans.
The report on the missing funds also highlighted alleged investments in venture capital firms, a Bahamian real estate portfolio worth $243 million, and multiple donations to non-profit organizations.