FTX cryptocurrency exchange may consider restarting its operations after recovering $7.3 billion in assets following its November 2022 bankruptcy filing, according to lawyers representing the debtors.
The cryptocurrency market has been experiencing a rollercoaster ride in recent years, with exchanges and tokens rising and falling in value and popularity. One of the most significant events in the crypto world occurred in November 2022 when Sam Bankman-Fried’s cryptocurrency exchange FTX filed for bankruptcy. Since then, FTX has been mired in court proceedings, but there is now some news that could bring hope for the future of the exchange.
During an April 12 hearing in the United States Bankruptcy Court for the District of Delaware, lawyers representing the debtors of FTX revealed that the crypto firm had recovered around $7.3 billion in liquid assets. This is an impressive amount, given that the March filing from the debtors reported the four FTX company silos had roughly $4.8 billion in scheduled assets as of November 2022, with an investigation into the assets ongoing.
The legal team also revealed that FTX may consider restarting its cryptocurrency exchange operations sometime in the second quarter of 2024, suggesting a reboot as early as April. This news has caused a surge in the price of FTT, the exchange’s token, which rose from $1.32 to $2.80, an increase of over 112%. Prior to this announcement, the token price had largely stayed between $1 and $2 since the firm’s bankruptcy filing.
FTX CEO John Ray had reportedly been mulling reviving the bankrupt exchange in a January interview, and this news suggests that the team behind the exchange is working hard to make it a reality. If the exchange does reboot, it will be interesting to see how it will fare in the competitive world of cryptocurrency trading.
The hearing also saw the bankruptcy judge deny a motion that would have allowed the court to prioritize reimbursing former FTX CEO Sam Bankman-Fried’s legal fees. The judge left the door open for SBF to present evidence to the court in the future regarding the motion.
The bankruptcy court proceedings followed the debtors’ announcement that a Swiss court had granted a petition allowing the sale of FTX Europe AG, the firm’s European arm. FTX Europe AG, along with 133 other subsidiaries, were part of FTX’s Chapter 11 filing in U.S. bankruptcy court in November 2022.