[NEWS] FTX considering reopening cryptocurrency exchange; decision likely within this quarter

It has been revealed that FTX, a cryptocurrency exchange that collapsed in November last year, is considering reopening in the future.

On the 12th, Andy Dietderich, a partner at New York law firm Sullivan & Cromwell and lead counsel for FTX, said at a hearing in the U.S. Bankruptcy Court in Delaware.

Dietderich said of FTX's current situation, "It's stable. The dumpster fire is out."

He continued, "FTX is starting to think about the future. Resuming cryptocurrency exchange services is one of the options we are considering for FTX's future. We are negotiating with stakeholders to reopen and may make a decision this quarter."

He also revealed that FTX currently has liquid assets worth $7.3 billion (approximately 972 billion yen). He said that the company has also benefited from the recent rise in cryptocurrency prices, and that since January of this year, its value has increased by more than $800 million (approximately 106.5 billion yen). However, he said that the funds are still insufficient to repay customers.

FTX needs to raise a large amount of funds to resume its services. It is currently being discussed whether the funds should be raised from FTX's assets that have been recovered or from its cryptocurrency holdings, or from a third party.

FTX's funds will be difficult to move until it receives final approval from the court for the repayment to creditors, and it is unlikely that approval will be granted within 2023.

Currently, withdrawals have resumed at FTX Japan, the Japanese subsidiary. According to Dieterich, it seems that FTX Japan is the only FTX group company that is able to withdraw customer funds. The reason for this is that Japan's cryptocurrency regulations are robust and strong.

In a report on the 9th, FTX interim CEO John Ray III once again criticized the company's sloppy management structure.

Basic accounting was not done, and former CEO Sam Bankman-Fried said the company had repeatedly used digital technology to convincingly lie to stakeholders, customers and creditors.

FTX also announced on the 12th that a moratorium on its European business, FTX Europe, had been granted by a Swiss court.

This will allow FTX Europe to explore strategic options, including a possible sale of the business, following a bidding procedure approved by the U.S. bankruptcy court.

Source:Hearing, FTX announcement
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