FTX Could Reopen

The FTX cryptocurrency exchange, which collapsed in November, may potentially reopen in the future, according to Sullivan & Cromwell, the solicitors for the company, in a court hearing on Wednesday. One option being considered is allowing creditors to convert a portion of their debt into a stake in the reopened exchange. The new CEO, John Ray, has formed a team to explore the possibility of reviving the FTX International exchange. However, it is unclear if investors would be willing to trust the company again, particularly in light of allegations of misappropriated client assets. The plan for reopening will need to generate a significant amount of money, and there is an internal dispute about whether that money should come from the FTX estate’s funds or other sources. Customers may have the opportunity to take a portion of the estate’s revenues in return for an interest in the future exchange. FTX lawyers also reported that they have recovered $7.3 billion in liquid assets from the defunct exchange, but equity distribution is still far away.