Crypto exchange FTX FTT/USD is actively seeking to reestablish its principal international exchange platform. This initiative comes in the wake of the company's turmoil due to allegations regarding the loss of nearly $9 billion of client funds before it crumbled last year.
John J. Ray III, who was appointed CEO in November when FTX entered bankruptcy, told The Wall Street Journal, “[The company] has begun the process of soliciting interested parties to the reboot of the FTX.com exchange.”
The report quoted sources as saying that FTX is in preliminary discussions with potential investors about supporting the revival of FTX.com.
Various frameworks, including forming a joint venture, are being considered.
As part of the rejuvenation, FTX is expected to undergo a rebranding.
The sources added that discussions encompass potential compensation for certain current clients, possibly by granting them shares in the restructured organization.
One of the companies expressing interest in contributing to FTX's revival is Figure, a blockchain technology firm. According to the sources, Figure was previously involved as an investor in a group that attempted to acquire the rights to relaunch Celsius Network, another crypto firm that went bankrupt.
Also Read: Digital Euro Master Plan: European Commission Unveils Roadmap To Modernize Currency
But the company was outbid by a consortium backed by Fortress Investment Group.
Those looking to financially contribute or partake in FTX’s resurrection are required to present their preliminary expressions of interest to FTX and its consultants within this week, sources said.
As of now, FTX has not indicated any intentions of reviving its U.S. exchange, which was relatively minor in scale. Previously, U.S. citizens were barred from trading on FTX's international platform, although some managed to do so via foreign accounts.
FTX aims to devise a reorganization strategy that sustains its core exchange, believing this to be a more favorable outcome for its multitudinous clientele than shutting down.
Read Next: KuCoin Introduces Stricter KYC Protocols: Deadline For New User Requirements Looms
Join Benzinga's Future of Crypto in New York City on Nov. 14, 2023, to stay updated on trends like AI, regulations, SEC actions & institutional adoption in the crypto space. Secure early bird discounted tickets now!
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
