The controversially collapsed cryptocurrency exchange FTX is looking to reopen and serve its services in the crypto space in the future.
Crypto exchange FTX’s lawyers from American multinational law firm Sullivan & Cromwell highlighted in a court hearing on Wednesday 12 April said that it is likely to reopen in the future after receiving proceedings from the bankruptcy claim.
Andy Dietderich, FTX’s primary attorney, explained to the court that reopening the crypto exchange once more was one of several viable options being evaluated for the firm’s destiny.
Apart from this, Dietderich talked about raising a large amount of money on the reopening of the exchange. But internal discussions are still undecided whether the funds will come from the assets of FTX Estate or from other sources.
Dietderich further added that “There are possibilities that customers could have an option to take part of their proceeds that they would otherwise receive in cash from the estate and receive some kind of an interest in the exchange going forward.”
After news broke about FTX’s Europe arm possibly being sold, the rumors about FTX reopening were fortified when its legal team hinted at the potential reopening during the hearing.
FTX’s team of attorneys informed Judge Dorsey about a reorganization plan which is scheduled for filing in July and might be confirmed by Q2 2024.
Sam Bankman-Fried (SBF) was the CEO of Bahamas-based crypto exchange – FTX, one of the largest cryptocurrency exchanges worldwide, which collapsed dramatically in November 2023 and its native token FTT also plummeted from $26 to $1.5 during this period.
But following news of the reopening, FTT, the native cryptocurrency on the FTX exchange, surged almost 78% on April 12. However, it appears to be under pressure, currently trading at $2.2 according to CoinMarketCap data. In particular, the overnight trading volume reached $450 million, with an 1881% overnight increase.
