• FTX CEO John J. Ray III is reportedly considering rebooting the bankrupt crypto exchange.
• This follows Ray taking over after former CEO Sam Bankman-Fried’s legal troubles.
• The Wall Street Journal previously reported that Ray had set up a task force to explore the possibility of restarting FTX instead of selling its assets.
FTX Considering Reboot After Bankruptcy
FTX, a disgraced cryptocurrency exchange, is reportedly being considered for a reboot by its current CEO John J. Ray III following its bankruptcy declaration in November 2020. According to newly filed court documents, Ray appeared to take part in multiple activities centered on an FTX reboot which included reviewing plans for an exchange fortification from cyber security firm Sygnia and reviewing bidder lists and other material related to the reboot process. The CEO worked 223 hours in April and billed $290,160 for his efforts according to a monthly compensation report filed with the U.S. Bankruptcy Court for the District of Delaware.
Sam Bankman-Fried’s Legal Troubles
The original shutdown of FTX was caused by the collapse of its native asset and forced customer withdrawals which led to former CEO Sam Bankman-Fried’s resignation due to legal troubles he faces involving allegations of defrauding customers and mishandling billions of dollars worth of their funds, as well as making illegal political donations. If convicted, he could face more than 100 years in prison.
Task Force Setup To Explore Restart Possibility
In January 2021, The Wall Street Journal reported that Ray had set up a task force to find out if restarting the exchange could be a better alternative than selling off its assets or liquidating them completely. In his initial filing on the company’s affairs, Ray said he has never seen such mismanagement before in his career: “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”
Reboot Plans Underway
Currently it seems that plans are underway at FTX for some kind of reboot based on recent filings made with the court suggesting activities like “Review 2.0 next steps summary from PWP (purchase with purchase),” “Review next steps and comment on FTX restart,” “Review and finalize 2.0 reboot of exchange material for distribution,” and “Review and comment on 2.0 bidder list” among others have been undertaken by Ray himself during April 2021 when he logged 223 hours at work billing $290,160 for his efforts according to reports filed with the U.S Bankruptcy Court for the District of Delaware .
Final Resolution Yet To Be Decided
It remains unclear what will happen ultimately with FTX but one thing is certain – an extensive amount effort is currently being put into exploring all options available including whether it would be possible or beneficial to restart operations at some point in time given current circumstances including those surrounding disgraced former CEO Sam Bankman-Fried who faces serious legal trouble involving fraud allegations if convicted could face more than 100 years in prison .