Cryptocurrency investors suffered massive losses last year due to the collapse of the second largest crypto exchange. Those who used the exchange are still unable to recover their balances. However, the FTX bankruptcy committee has started researching companies that could revive the exchange, stating that it has remarkable features. The latest news shows significant progress has been made.
Will FTX Exchange Reopen?
A few weeks ago, we mentioned that one of the companies that the current FTX officials met in December could make a decision. The court records mention this date as an estimate. Now, according to knowledgeable sources, it is claimed that Proof Group, a part of the Fahrenheit consortium that successfully bid for Celsius, has also made an offer for FTX.
According to Perella Weinberg Partners, the offers received for the relaunch of the exchange are still under review. Proof Group is one of the three alternatives in the decision-making process and is known as a venture capital investor in crypto projects such as Aptos, Lightspark, and Sui. It is claimed that the other two companies that made offers are Figure and Tribe Capital.
So, is this really possible? Even if an agreement is reached on the offer, there are thousands of issues that need to be overcome for the exchange to be relaunched. For example, FTT Token is an unregistered security, so will it have any connection to the exchange in this relaunch? Or why wouldn’t the new management create their own FTT Token? After all, the current token distribution is not in favor of the new management, and all assets will be sold and refunded to customers.
Then why is the FTT token rising? There are many investors in the cryptocurrency industry who are fond of speculative movements.
Can FTX be Reopened?
After Voyager’s bankruptcy, many companies made offers. However, Thomas Braziel, the founder of 117 Partners and an expert in bankruptcy, stated that the process is not as simple as it is believed, which is why the offers were withdrawn. The problem is that the situation of FTX exchange is much more complex than Voyager’s. There are many tasks that need to be resolved, from unlocking the company’s key tokens to thousands of areas where it is legally non-compliant.
Finding someone who is willing to face the possibility of dealing with the SEC and other regulators and pouring money into legal battles that could last for years is nearly impossible. This will become clearer in December.
