Bankrupt Crypto Firm FTX Initiates Discussions to Relaunch Digital Currency Exchange

Bankrupt crypto exchange FTX is reportedly moving forward with plans to attempt to bring back its international digital currency exchange, the WSJ reported on Wednesday (June 28, 2023). The news outlet also shared statements from CEO John Ray.

The firm has now initiated the process of “soliciting interested parties to the reboot of the exchange,” Ray stated (according to the report from the WSJ).

The failed crypto firm has been holding discussions with investors regarding backing a possible reboot of the platform via structures like a joint initiative, according to the report while citing sources familiar with the matter.

Legal representatives for FTX have not yet responded in detail to this development.

In November of last year, FTX filed for Chapter 11 bankruptcy protection in the US after its spectacular collapse that had sent shockwaves across the nascent crypto-assets sector.

In the days that had been leading up to the collapse, clients of Sam Bankman-Fried‘s virtual currency exchange had proceeded to withdraw billions of dollars, thus impacting the company’s available liquidity.

A potential rescue deal with competing exchange Binance had also fallen through, thus leading to one of crypto’s highest-profile collapses in the past few years.

Since that time, the volatile sector has been facing challenges, partly due to the increased scrutiny of regulatory authorities. Meanwhile, FTX founder SBF is now facing a criminal lawsuit brought by the US government for allegedly engaging in fraudulent activities.

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