• FTX Derivatives Exchange, co-founded by Sam Bankman-Fried, has collapsed and caused major hurt and losses to customers and investors.
• There are speculations that the exchange may be restarted due to the payment of $13.5 million in legal fees for February.
• The process of restarting the exchange will face many complications, including balancing a sum of $7.3 billion owed to investors and navigating legal challenges with respect to regulatory demands.
FTX Derivatives Exchange Collapse
The once mega trading outfit FTX Derivatives Exchange, co-founded by Sam Bankman-Fried, has caused a lot of hurt for customers and investors across the board after its collapse.
Speculation of Restart
Amidst the clamor for restarting FTX, there are ongoing speculations based on settled legal fees that it may be restarted due to the payment of as high as $13.5 million in legal fees for February, which includes collaborations with key partners that can help activate the rebooting plans.
John Ray III, who is in charge of the firm at the moment, revealed plans to relaunch FTX.com, but this will involve navigating many complications across board; such as balancing a sum of $7.3 billion owed to investors from more than $11.3 billion it is currently owing them and navigating legal challenges with respect to regulatory demands from agencies like US Securities and Exchange Commission (SEC).
Customers who were partaking in Japanese outfit have regained access to their locked funds as that subsidiary was one of few solvent entities; however customers from parent company remain locked out from their funds even after bankruptcy filing stating between 100k – 1 million creditors who remain unpaid till now.
In conclusion, while there remains much speculation if FTX will indeed go back into business or not; there are many complications involved with regards to financials and regulations which must be navigated efficiently before any final decisions could be made regarding its return back into business operations again