The revival of the FTX is set to begin under the leadership of John Ray III. Reports from Wall Street Journal highlighted that the new CEO, John Ray, noted that the international exchange has started seeking potential investors who are interested in restarting the exchange that shut down under Sam Bankman-Fried.
FTX is a cryptocurrency exchange that was launched in 2019, led by SBF. Three years after being in operation, the exchange collapsed. As a result of the collapse, FTX filed for bankruptcy on November 11, 2022. The bankruptcy filing revealed that FTX had liabilities that were higher than its assets.
Apart from the loss in users’ money, the collapse of FTX had a significant impact on the cryptocurrency market. The price of Bitcoin fell by 15% in the days following the collapse, and the overall cryptocurrency market capitalization fell by $1 trillion. Several crypto firms such as BlockFi and Genesis were affected by the fall of the exchange.
Following the collapse was a series of legal battles that resulted in the arrest of SBF and the revelation of the faulty systems the exchange ran that led to its collapse. In the cause of the legal proceedings, John Ray III, a bankruptcy expert, was hired to oversee the affairs of the exchange. This has led to the company seeking a reopening.
Further details of the exchange also show that FTX recovered about $6.2 billion in cryptocurrencies by April 2023 while the funds of customers taken off the exchange are at $9 billion.
In the renewed hope of setting the exchange up again, Figure, a technology firm, has shown interest as one of the investors in the new FTX which will most likely have a change of name. Although FTX “international” is deemed to be up soon, there are no updates on the future of FTX. US or if FTX will serve the US market.