Wednesday, February 8, 2023

The FTX administrator studies reopening the platform after its bankruptcy

The administrator in charge of running the cryptocurrency firm FTX after its bankruptcy is studying reopening the business as a formula to try to recover the money owed to its creditors, he said this Thursday in an interview with The Wall Street Journal (WSJ).

The executive, John J. Ray III, explained that he has created a working group to analyze the possibility of restarting the operations of ftx.com, the main international platform of the company, which has remained inactive since the firm declared bankruptcy on last november.

“Everything is on the table. If there is a way for that, we will not only explore it (but) we will do it, “said Ray, who assured that there are people who are working with who believe that there is a” viable business “in FTX.

A priori, among the options that administrators have, there is also that of a total liquidation of the company, selling its assets to try to raise as much money as possible.

The main task of Ray and his team is to recover the funds owed by FTX, the amount of which has not been specified but is estimated to be more than US$8 billion.

Last Tuesday, the company said that it has identified US$5.5 billion in liquid assets to compensate those affected, but confirmed that the figure is currently insufficient to satisfy everyone.

FTX, once a major cryptocurrency platform that once had a valuation of $32 billion, has wreaked havoc on the industry after its rapid plunge after many users rushed to withdraw their funds amid reports that put doubt the solvency of the company.

Its founder, Sam Bankman-Fried, is accused by the United States authorities of multiple crimes, of which he has pleaded not guilty before a federal court in New York, where he arrived after being extradited from the Bahamas, where he resided and had his headquarters. your company.

The 30-year-old is now under house arrest at his parents’ home after agreeing to an unprecedented US$250 million bail; From there, he continues to defend his activity and criticize the fact that FTX was forced into bankruptcy and the way the process is being managed.

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