Reports Show That FTX Is Seeking To Relaunch• July 3, 2023 7:12 pm • Comments
It looks like the failed exchange FTX is in talks of doing a relaunch and restarting the international exchange once again.
As part of this relaunch, it was revealed that FTX would be going through a rebrand and there are discussions with investors regarding what would be inclueded.
It is unclear for the crypto community if this will actually be successful as many investors have already lost confidence in the exchange.
After all, it was one of the biggest financial scandals that has happened in the digital asset industry and many have already decided that it is too much of a risk.
With that being said, it may be curious for others to see how exactly the exchange plans on rebuilding itself from the ashes.
I heard FTX has recovered $7B. From where did they recover it?
If FTX relaunch, would continue to trade on the platform or withdraw your money if available and leave?
— 🥞Freedom🥞📊📈📉 (@Crypto4bailout) June 26, 2023
The team is currently in discussions with investors and observing potential structures. Now, the exchange is looking at a potential joint venture, the report stated.
Conversely, the report noted that FTX would require a rebrand to be included in any restart. Additionally, it has stated its desire for existing users to have a stake in what could come of a relaunch.
The company has been in the midst of rather convoluted bankruptcy proceedings. Moreover, it certainly would require a rebrand to have any chance at success in the modern market. Additionally, questions of regulatory compliance would need to be answered.
Yet, with a change in leadership, it would be interesting to observe how a new entity would distance itself from the harm caused by the FTX company. However, it certainly would have a difficult time maneuvering out from behind the shadow of Sam Bankman-Fried.
Plans of the relaunch have already been confirmed by the new CEO John Ray who has shared the process to interested parties.
The exchange is also in the middle of the process of recovering as much customer funds as possible as many customers had lost access to their digital assets during the collapse.
It is not expected that the full value of the assets will be returned to the users, but it will be a certain percentage.
However, the timeline of when those assets will be available are still unknown and it is unclear what the exact percentage will be returned.
The lawsuit against former CEO Sam Bankman-Fried still continues as investigations reveal more about what was done with customer deposits.
JUST IN: 🚨 The Wall Street Journal reported that the bankrupt FTX's new management is starting to prepare plans to relaunch the exchange. pic.twitter.com/OXuTZLSF9t
— Renato Cari (@renato_cari) June 28, 2023
In November, FTX filed for Chapter 11 bankruptcy protection in the United States following its spectacular collapse that sent shivers through the digital assets industry.
In the days leading up to the failure, customers of Sam Bankman-Fried’s crypto exchange withdrew billions of dollars, hobbling the firm’s liquidity. A rescue deal with rival exchange Binance also fell through, precipitating crypto’s highest-profile collapse in recent years.
The industry has since been reeling amid the scrutiny of global regulators, while FTX founder Bankman-Fried faces a criminal lawsuit by the U.S. government for alleged fraud.
JUST IN: Bankrupt FTX begins process to relaunch the exchange, WSJ reports.
— Watcher.Guru (@WatcherGuru) June 28, 2023
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