John Ray Pursues Reboot Plan for FTX

According to the most recent court filings, new CEO John Ray is working on a reboot plan for the bankrupt cryptocurrency exchange FTX.

In a court filing dated May 22, the FTX team detailed Ray’s work during the Chapter 11 bankruptcy in a compensation report.

The review report described several measures taken by Ray to protect the best interests of the debtor. However, the mention of relaunching FTX captured the crypto community’s attention.

In January, Ray first discussed relaunching the troubled cryptocurrency exchange.

At the time, news reports suggested that the insolvent cryptocurrency exchange had discovered $5.5 billion in liquid assets, with the new CEO collaborating with creditors on a plan to revive the company.

The FTX team plans to relaunch the exchange by the second quarter of 2024, according to a report from April that indicated the business had recovered $7.3 billion in assets.

The most recent court filing indicates that a restart strategy is being seriously considered. In the past month, the new CEO had scheduled several meetings with creditors and debtors, according to the court document.

Key topics of the sessions included planning for the exchange’s structure, reviewing plans for the exchange’s restart, and finalizing the documentation necessary for relaunching the cryptocurrency exchange as FTX 2.0.

It appears from the document that FTX will participate in a bidding process.

As news of the relaunch became public, the price of the native FTX token rose by more than 13 percent.

The court document relieved the cryptocurrency community, with many praising Ray’s efforts to revive the exchange that owes billions of dollars to its creditors.

DegenSpartan, a prominent crypto Twitter influencer, suggested that FTX 2.0 could be the optimal path to recovery for all parties.

He stated that many creditors would sell assets at a discount to get out of these asset pools, which could eventually make the cryptocurrency exchange solvent again.

However, not everyone was enthusiastic about the reboot, as many claimed that the exchange was founded on a fraudulent philosophy.

According to one Twitter user, allowing FTX to resume operations would be a malicious act. The user stated, “FTX has blood on their hands from all the “plucking” they have done to our industry.”