FTX Recovered $7.3B In Assets; Lawyer Confirms Crypto Exchange Relaunch In Q2

The Bankrupt crypto exchange, FTX, has managed to recover $7.3 billion in both crypto assets and cash. The total shows that recovery efforts have raised more than $800 million since January which is definitely a positive development for the bankrupt crypto exchange. On Wednesday, FTX’s lawyers from the Sullivan & Cromwell law firm revealed the amount at a U.S. bankruptcy court hearing in Delaware.

The lawyer also revealed plans to consider resuming operations of the collapsed crypto firm in the second quarter of 2023, which was suspended in November last year. 

Moreover, one possible option that was considered was to allow FTX’s creditors to transfer part of their assets to stake in the reopened exchange. The price of FTT, the native token of FTX, shows a significant increase after this news.

FTX’s lead attorney, Andy Dietderich, stated that the company is now looking toward its future after months of effort devoted to collecting resources and trying to figure out what went wrong. 

Notably, the crypto firm faced disaster under the leadership of Sam Bankman-Fried, who stepped down and was arrested. Later, Bankman pleaded not guilty and was released on bail package.

Dietderich told the court that relaunching the crypto exchange is one of several options being considered for the firm’s future. If that step is taken, then the project would require significant capital raising, he said. 

However, it is unclear whether FTX will utilize its own assets to reopen the exchange instead of using the funds to pay users or whether it will be backed by a third party.

Dietderich said:

“There are possibilities that customers could have an option to take part of their proceeds that they would otherwise receive in cash from the estate and receive some kind of an interest in the exchange going forward.”

FTX Token Price Doubles

John J. Ray III, the new CEO of FTX, had earlier stated efforts are underway to reclaim value for consumers and creditors. Also, FTX’s lawyers revealed that the company is about to reopen. These good predictions increased the price of FTX’s native token, FTT.

Currently, FTT is trading at $2.67. It represents a nearly 98% increase from the previous price following the news. However, the value is still below the $25 level that was held before the November 2022 FTX crash.

Bankman’s firms were not the only ones caught up in the FTX saga. But the fiasco had an umbrella effect on the crypto space around the world. However, the extent of customer losses due to the bankruptcy is still unclear.