FTX CEO: We have begun soliciting interested parties to restart the FTX.com exchange

Bankrupt cryptocurrency exchange FTX is one step closer to relaunching a brand new exchange.

According to a June 28 report by The Wall Street Journal, FTX head of restructuring John Ray said the company has “begun soliciting interested parties to restart the FTX.com exchange.”

The company has been in talks with investors about a possible restart of its fundraising, people familiar with the matter said. Blockchain lending firm Figure is one of the parties that has shown interest in the process.

Potential bidders reportedly have until the end of this week to submit a letter of intent – ​​a document outlining the terms and conditions of their participation.

Notably, sources claim that current FTX creditors may receive shares in the reorganized cryptocurrency exchange, in addition to other forms of compensation.

Importantly, “the negotiations include the possibility of compensation to certain existing customers, possibly by offering them shares in any restructured entity”.

We expect clients to receive recovery and/or equity tokens in FTX 2.0.

— FTX 2.0 Alliance (@AFTXcreditor) June 28, 2023

It is expected that FTX will not be rebranded as “FTX 2.0” or any other derivative of its original name, but will instead choose to rebrand as an entity with a different name.

Overall, Ray and the rest of the FTX team seem to think a restart is the best way to ensure the best outcome for creditors in terms of repayment.

FTX’s legal team said in April that they expect the launch of the new exchange to be completed sometime in the second quarter of 2024.

According to a June 26 recovery progress report, FTX still has a shortfall of nearly $2 billion on its books. The effort to recover these missing funds has been further complicated by the alleged misuse of customer assets by key FTX leadership.

Daniel Friedberg, a former FTX regulatory official who is believed to be named in many of the legal proceedings, was sued by FTX on June 27 for allegedly paying “hush money” to silence potential whistleblowers and approving a series of fraudulent transfers and loans.

The report on the missing funds also detailed a series of alleged investments in venture capital firms, a $243 million real estate portfolio in the Bahamas and significant donations to nonprofit organizations.