In a court hearing on Wednesday, Sullivan & Cromwell, the solicitors for crypto exchange FTX, said the company is contemplating reopening in the future while it deals with bankruptcy.
Allowing FTX’s creditors to convert a portion of their ownership into a stake in a reopened exchange was one possible solution that was proposed.
The exchange’s relaunch was one of many potential possibilities being evaluated for the company’s future, lead FTX attorney Andy Dietderich told the court.
If that course of action goes ahead, according to Dietderich, the plan will need to generate a sizable amount of money, and there is internal dispute about whether that money should come from the FTX estate’s funds or from other sources.
However, the lawyer emphasised that there are numerous potential outcomes and that any choices are far from definitive.According to Dietderich, “There are as many opinions on this as there are professionals involved in this case.” And that is a lot, too.
The company’s lawyer also stated that FTX has recovered more than $7.3 billion in cash and liquid crypto assets, which has increased over $800 million since January.
According to Dietderich, FTX has profited from a recent upsurge in crypto prices. Based on cryptocurrency values from November 2022, when it declared for bankruptcy after traders withdrew $6 billion from the platform in three days and crypto exchange Binance pulled out from a rescue deal, its total recovery would be worth $6.2 billion.
