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The World of Cryptocurrency is ever-changing and now the Collapsed FTX could reopen in the future. In a court hearing on Wednesday, Sullivan & Cromwell, the solicitors for FTX, the cryptocurrency exchange that crashed spectacularly in November, said the company is considering reopening at some point in the future while it navigates bankruptcy. Allowing Crypto Exchange FTX's creditors to convert a portion of their own into a stake in a reopened exchange was one potential choice that was proposed.
The FTX International exchange's new CEO believes that it may be possible to save it. John Ray said that a team has been formed to determine whether the trading platform might ever once again welcome consumers in an interview with The Wall Street Journal. Of course, it remains to be seen if ordinary investors would ever be prepared to place their trust in the company again, especially in light of allegations that subsidiary trading firm Alameda Research misappropriated billions of dollars in client assets.
The exchange's restart 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 is pursued, according to Dietderich, the plan will need to generate a sizable amount of money, and there is an internal dispute about whether that money should come from the FTX estate's funds or other sources. Customers may have the opportunity to take a portion of the estate's revenues that they would normally receive in cash in return for an interest in the future exchange, according to Dietderich. However, the lawyer emphasized that there are numerous potential outcomes and that any choices are far from definitive.
Additionally, the FTX lawyers informed the court that they had recovered from the defunct exchange $7.3 billion in liquid assets, an increase from the $1.9 billion total in January. However, they continued, FTX is "far away from an equity distribution."
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