FTX Trying to Revive Flagship International Cryptocurrency Exchange: Report

Bankrupt FTX is moving ahead with efforts to revive its flagship international cryptocurrency exchange, the Wall Street Journal reported on Wednesday citing CEO John Ray.

The company “has begun the process of soliciting interested parties to the reboot of the FTX.com exchange,” Ray said, according to the Journal’s report.

The failed crypto company has been holding talks with investors about backing a potential restart of the FTX.com exchange through structures such as a joint venture, the report added citing people familiar with the discussions.

Lawyers for FTX did not immediately respond to a Reuters request for comment.

In November, FTX filed for Chapter 11 bankruptcy protection in the United States following its spectacular collapse that sent shivers through the digital assets industry.

In the days leading up to the failure, customers of Sam Bankman-Fried’s crypto exchange withdrew billions of dollars, hobbling the firm’s liquidity. A rescue deal with rival exchange Binance also fell through, precipitating crypto’s highest-profile collapse in recent years.

The industry has since been reeling amid the scrutiny of global regulators, while FTX founder Bankman-Fried faces a criminal lawsuit by the US government for alleged fraud.

Recently, a federal judge rejected Sam Bankman-Fried’s bid to throw out most of the US government’s criminal case accusing the FTX cryptocurrency exchange founder of orchestrating a multibillion-dollar fraud.

Prosecutors accused Bankman-Fried of stealing billions of dollars in FTX customer funds to plug losses at his Alameda Research hedge fund.

Prosecutors accused Bankman-Fried of stealing billions of dollars in FTX customer funds to plug losses at his Alameda Research hedge fund.

© Thomson Reuters 2023