FTX’s new CEO John Ray III has initiated the process of reaching out to potential participants in the exchange’s revival.
According to the report by WSJ, the bankrupt trading firm is negotiating with investors about supporting a potential reboot through setups like a joint venture, citing people familiar with the conversations.
The relaunch plan was first revealed in April by FTX lawyers after the recovery of a $7.3 billion fund.
As earlier reported, these assets included $2 billion in cash, $4.3 billion in Class A cryptocurrencies, $300 million in securities, and $600 million in investment receivables, etc.
The exchange’s lead counsel, Andy Dietderich, informed the court then that selecting this course of action would necessitate obtaining a large sum of money.
Additionally, he disclosed that there was internal disagreement within the business regarding whether the cash should come from the FTX estate or other outside sources.
In May, the exchange filed avoidance actions to try and recoup about $4 billion that Genesis and non-debtor affiliates had received, so that these funds might be distributed to all other creditors of the FTX Debtors in the Chapter 11 Cases.
Then, on June 22, it requested more than $700 million from K5 Global, Mount Olympus Capital, and SGN Albany Capital, three investment companies owned by former CEO Bankman-Fried.
FTX’s New CEO Doubles Down On Transparency And Fund Recovery
Just the other day, FTX published its second report, detailing the mishandling of customer deposits by the former management team and the staggering $8.7 billion amount it owed to the exchange debtors.
The release of this report, according to John J. Ray III, who is also the Chief Restructuring Officer of FTX Debtors, is in consistent with their dedication to openness and the difficulties they have faced in their pursuit of maximum recovery.
Ray stressed their commitment to continuing their analysis and disclosing discoveries as they move forward in their efforts to preserve as much value for creditors as possible,
So far, the new management at FTX has secured almost $7 billion in assets since the bankruptcy filing, which they can utilize to reimburse consumers whose funds were frozen when the crypto exchange crashed back in Nov 2022.