FTX Might Launch Again As It Recovers $7.3 Billion In Assets

April 13, 2023 6:49 pm Comments

The bankrupt crypto exchange FTX announced recently that it has now recovered more than $7.3 billion in assets which was higher than expected.

Based on this recovery, it seems that it is possible that the exchange may decide to launch again during Q2 of this year.

Whether or not the crypto community will decide to use the exchange’s services again is another question, but it indicates that there is a good chance that most users of the exchange may recover some amount of their lost assets.

The collapse of FTX had been one of the highlights of last year that fueled the bearish crypto markets and has led to an aggressive agenda against crypto by lawmakers.

Unfortunately, it seems that regulatory agencies like the SEC are just using the incident as an excuse to enforce its own interpretation of the crypto regulatory guidelines.

Watcher.guru reports:

The Reuters report notes that the exchange officially recovered the billion in both cash and digital assets. Subsequently, the development arrived after a bankruptcy court hearing that took place today noted the increase in recovered funds.

A recovery effort that saw an increase of more than $800 million since January.

Although recovery of funds are certainly positive for former users, the news of a potential relaunch is an interesting one. Specifically, FTX is undoubtedly three letters that represent a horrendous period of time for many investors.

Subsequently, the public image of the brand seems irreparably tarnished. Yet, it is undetermined if the proposed relaunch would indicate a branding overhaul.

With that being said, it seems that the crypto market is already recovering from last year’s events and is continuing to have a sustained bullish rally.

After all, regulatory environments within the US is not enough to affect the crypto markets as the industry is not limited to a single region.

Additionally, institutional investors are taking the chance to accumulate more digital assets during this time so it seems that the FTX incident is finally behind us.

The latest news indicate though that restarting FTX might require a substantial amount of capital where it has to sell of assets to raise cash.

PYMNTS.com concludes:

The hearing came days after FTX’s debtors released a report arguing that the company’s downfall stemmed from a small group of executives — led by Bankman-Fried — who apparently had no desire to establish proper controls.

“These individuals stifled dissent, commingled and misused corporate and customer funds, lied to third parties about their business, joked internally about their tendency to lose track of millions of dollars in assets, and thereby caused the FTX Group to collapse as swiftly as it had grown,” the FTX debtors wrote.

“In this regard,” they added, “while the FTX Group’s failure is novel in the unprecedented scale of harm it caused in a nascent industry, many of its root causes are familiar: hubris, incompetence, and greed.”

Meanwhile, the crypto industry as a whole is at a crossroads as it finds itself locked out of the banking sector, PYMNTS reported Wednesday.

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