Until recently, FTX was the third largest cryptocurrency trading market in the world. The fiasco he suffered in November 2022 caused the company to declare bankruptcy and launch a long string of investigations that exposed the bad practices of the company and its CEO, Sam Bankman-Fried. Its impact on the financial market and of course the crypto segment was huge, but FTX now looks ready to rise from the ashes.

What happened. As Reuters noted, FTX has recovered more than $7.3 billion in cash and crypto assets, an increase of more than $800 million since January. “The situation has stabilized and the fire is out,” the company’s lawyer, Andy Dietderich, said in court. The company is just starting to think about what it will do in the future, and one of the options is surprising, to say the least.

FTX can be reborn. This exchange or cryptocurrency market is negotiating options for a potential re-emergence with the same activity with investors, and they may make a decision this quarter.

How is this possible. FTX has benefited from recent rallies in the cryptocurrency market. The company’s new CEO, John Ray, detailed how various fund transfers and poorly managed accounting led to the asset’s collapse. According to him, there was a “complete failure” of controls protecting the asset.

Don’t they have to pay back the money first? The interesting thing is that the company has a lot of debt: A survey conducted in November, for example, revealed that it owed $3.1 billion to its 50 main creditors, while the total deficit turned out to be around $8,000 million. what it will mean for former FTX customers to return to operation. All of their crypto deposits were blocked during the bankruptcy investigation. Thanks to the country’s regulations, only FTX customers in Japan were able to withdraw funds.

they will need a lot of money. To get back to business, FTX will need a large capital injection. This may help if the value of cryptocurrencies continues to rise, but it is unclear whether the company will use its own funds to restart the market. According to Dietderich, this could include outside financing or the sale of company assets.

In the meantime, they continue to technical bankruptcy.. The surprising thing about the case is that FTX has dived into its technical bankruptcy filing. Those in charge are working on a plan under the well-known Chapter 11 that allows companies to declare bankruptcy and then restructure and attempt to return to operation. They are expected to complete this plan in July, but approval likely won’t come until the second quarter of 2024.

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