His lawyer said that crypto exchange FTX, whose sensational bankruptcy shook the crypto market, could reopen. Following this statement from the stock market, the local token of the FTX exchange FTT and the prices of 3 altcoins linked to the stock market started to rise.
After the statement from FTX, the altcoin price made 2X
Attorneys for Sullivan & Cromwell said in a court hearing Wednesday that cryptocurrency exchange FTX, which crashed spectacularly in November, is considering reopening at some point in the future as it moves towards bankruptcy. One of the potential options discussed was to allow creditors of FTX to convert some of their assets into shares on a reopened exchange. The price of FTX’s FTT token more than doubled after the news.
Meanwhile, the prices of Solana (SOL), Bonfiad (FIDA) and Near Protocol (NEAR), which are linked to the stock market and suffered heavy losses during its collapse, also rose.
Lawyer: A reboot is one of many potential options!
Andy Dietderich, FTX’s chief attorney, told the court that restarting the stock market is one of many potential options considered for the company’s future. Dietderich noted that if this path were chosen, the plan would require substantial raising of capital, and there were internal discussions about whether that capital should come from capital of the FTX property or from third-party capital. In this context, Dietderich made the following statement:
Clients are likely to have the option to receive a portion of their income that they would otherwise have received in cash from the property and gain some form of interest in the stock market going forward.
However, the lawyer stressed that the possibility of FTX rebooting is one of many possibilities and any decision is far from final. Dietderich said, “I think there are as many opinions on this as there are professionals involved in this case. And that’s too much,” he said. FTX lawyers also told the court that they acquired $7.3 billion in liquid assets from the defunct exchange, up from $1.9 billion in January. However, they added that FTX is still “far from equity distribution.”
FTX allowed to investigate the sale of its business in Europe
The bankrupt firm said in a press release on April 12 that its European business, FTX Europe AG, has filed a petition for a Swiss moratorium issued by a Swiss court. According to the firm, the moratorium will facilitate the exploration of strategic alternatives, including the previously announced potential sale of its business, under US Bankruptcy Court-approved bidding procedures.
The bankrupt firm added that the Swiss court has appointed an unnamed manager for FTX Europe AG. FTX EU launched a website for European customers to submit their withdrawal requests in March. The bankrupt exchange noted that the moratorium did not change this process.
Recent reports have revealed that the bankrupt cryptocurrency exchange is storing private keys in cryptocurrency wallets on Amazon Web Services (AWS). The report also noted that FTX used QuickBooks and Microsoft Excel to manage accounting across multiple organizations in a “lack of organization and error-prone” manner.
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