According to John Ray III, it is a question of knowing what would better allow the reimbursement of damaged customers between the revival of the FTX group and the sale of the company’s subsidiaries.
John Ray III, who took over the reins of FTX after its bankruptcy last November, is currently evaluating the possibility of reviving the FTX.com group. FTT price calmly gained more than 40%.
The new CEO of FTX in force since the stock’s bankruptcy and the retirement of Sam Bankman-Fried, claims to have established a task force dedicated to relaunching the FTX.com group.
Is a Return of FTX Possible?
According to John Ray III, although some people in key positions in the company may have taken reprehensible actions, the fact is that FTX has some potential.
John Ray III has some experience in restructuring bankrupt companies, having himself been active in repaying the creditors of the energy giant Enron Corp in the early 2000s. Said amounts to be returned then reached 10 figures, as well as the sum of the debts owed today by FTX, although as of today the exact amount of the latter is unknown.
Even so, the amounts raised so far by the stock market’s new management shed some light on this dark panorama. Sure enough, at the beginning of the month, FTX was reporting more than $5 billion in recovered assets, much more than originally anticipated.
Reimbursement of Targeted Injured Customers
According to FTX’s new CEO, the decisive element in this decision-making will be the reimbursement of the exchange clients being affected. Thus, the question will be to know what will generate more economic value between a restart of FTX, or the sale of the group and its subsidiaries.
Currently, the price of FTT is around 2.24, which reflects an increase of almost 140% in its value in the last 30 days. However, it remains far from its peak price (ATH) of $84 reached in early September 2021.
However, it will all be to restore some order to the books of FTX. According to Mr. Ray, who says he had never seen this in his entire career, Sam Bankman-Fried and his partners sometimes kept no record of multi-million dollar transactions, which the CEO also describes as a “spending spree.”
FTX teams, which have been extensively vetted, are currently going through over thirty terabytes of data belonging to FTX, in hopes of getting new assets. They also reportedly managed to grab several wallets from the exchange in the last week alone.
The market reacted strongly to the announcement, as FTT, the utility token of the failing exchange, was able to perform an intraday rally on the order of +40%.
Currently, the price of FTT is around $2.24, which reflects an increase of almost 140% in its value in the last 30 days. However, it remains far from its peak price (ATH) of $84, reached in early September 2021.
By Audy Castaneda