FTX is exploring options to revive its international cryptocurrency exchange, FTX.com, Chief Executive Officer John J. Ray III told the Wall Street Journal in an interview published Thursday.
See related article: Bankrupt FTX exchange has recovered US$5 bln worth of ‘liquid’ assets, lawyers say
Fast facts
- Ray claimed that some FTX customers still see value in rebooting the international trading platform despite the exchange’s founders and former top executives facing accusations of criminal misconduct, WSJ reported.
- Ray is reportedly looking to examine whether FTX.com’s revival would compensate its customers better than selling the exchange or liquidating its assets.
- The bankrupt Bahamas-based exchange and legal partner Sullivan & Cromwell said in a legal disclosure on Tuesday that FTX.com and FTX US have a “substantial shortfall of digital assets.”
- The disclosure said that FTX.com lost around US$323 million in crypto assets to hacks after it filed for bankruptcy, and US$426 million in crypto was transferred to the Bahamian authorities. The team said it flagged a total of US$5.5 billion worth of liquid assets for recovery, which includes US$1.6 billion in crypto assets.
- However, founder and former CEO Sam Bankman-Fried argued that the figures in the disclosure related to FTX US were inaccurate, and claimed that the U.S. arm is still solvent. He did not comment on data regarding FTX.com.
- FTX and sister hedge fund Alameda Research filed for Chapter 11 bankruptcy protection on Nov. 11, after falling into a liquidity crunch that followed revelations of inappropriate disclosure of reserves and misappropriation of client funds.
- Bankman-Fried has been accused of eight charges including wire fraud and conspiracy to commit money laundering. He pleaded not guilty to fraud charges earlier this month.
See related article: Former FTX U.S. CEO Sam Bankman-Fried rejects liquidators’ claim of recovered assets
