​​FTX Trading Considers Restarting Failed Crypto Exchange With | Global CRYPTO News

​​FTX Trading Considers Restarting Failed Crypto Exchange With Creditor Money

Bloomberg reported FTX is considering using money marked to repay customers to restart the exchange. According to Sullivan & Cromwell lawyer, Andrew G. Dietderich, the project would require a significant amount of cash. However, the company is still in the early stages of deciding whether to bring back the exchange, which allowed customers to trade digital assets before FTX collapsed. They could also try to raise money to fund a restart or drop the entire concept.

Dietderich also mentioned in court that the original FTX trading app was a “facade” that was more like a video game than a professional, properly functioning exchange. Funds needed to restart the exchange could come from third parties willing to invest in the project, or FTX could use some of the $7.3 billion worth of cash, crypto, and other assets it has so far collected. However, that money is being held until FTX wins final court approval for a creditor payout plan, which is unlikely until next year, as Dietderich mentioned. FTX Trading Ltd. is talking with the official committee of unsecured creditors about restarting the exchange, and the company was in court seeking more time to prepare a creditor payout plan.