Bankrupt crypto exchange FTX’s revival plans could soon become reality, as new CEO John Ray is working on a reboot plan per the latest court filings.
In a May 22 court filing reviewed by Cointelegraph, the FTX team shared a compensation report highlighting the work done by Ray during the Chapter 11 bankruptcy. The review report mentioned a series of activities undertaken by Ray to ensure the debtor’s best interests. However, the mention of rebooting FTX caught the crypto community’s attention.
Ray first talked about rebooting the troubled crypto exchange in January. At the time, news reports suggested that the bankrupt crypto exchange had discovered $5.5 billion in liquid assets, with the new CEO working with creditors on a revival plan. In April, another report suggested the exchange had recovered $7.3 billion in assets, and the FTX team plans to restart the exchange by the second quarter of 2024.
The latest court filing document suggests a reboot plan is definitely under consideration. The court document highlighted that the new CEO had scheduled a series of meetings with creditors and debtors in the past month.
FTX CEO John Ray III confirms FTX 2.0 plans. pic.twitter.com/FeCXOvdrt0— FTX 2.0 Coalition (@AFTXcreditor) May 22, 2023
Some key topics of the meetings involved planning for structuring the exchange, reviewing plans for restarting the exchange, and finalizing the material required for rebooting the crypto exchange as FTX 2.0. According to the document, it appears FTX will be entering a bidding process.
The news about the FTX reboot also boosted the price of the native FTX Token (FTT), which jumped by over 13% as news about the relaunch became public.
The court document brought relief to the crypto community, with many lauding Ray’s efforts to revive the exchange that owes billions to its creditors. Popular Crypto Twitter influencer DegenSpartan claimed that FTX 2.0 could be the maximum path to recovery for all parties involved.
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He stated that many creditors would sell cheaply just to get out of those pools of assets, and it could eventually turn the crypto exchange solvent again. However, not everyone was as keen on the reboot process, as many claimed that the origin of the exchange itself was based on a fraudulent philosophy.
One Twitter user said allowing FTX to resume operations would be a sinister move. “FTX literally has blood on its hands from all the ‘plucking’ they have done to our industry,” the user said.