With CEO John Ray apparently opening the floor to bidders seeking to finance the new business, FTX is edging closer to a potential rebirth.
The Wall Street Journal reported on June 28th that FTX is getting closer to reopening as a completely new exchange. John Ray, the head of FTX restructuring, announced that the company had started the process of contacting potential partners for the relaunch of the FTX.com exchange.
According to people with knowledge of the situation, FTX has been in contact with investors about funding the potential relaunch. Blockchain financing firm Figure is one of the interested parties.
Letters of Intent outlining the terms and conditions of prospective bidders’ involvement in the relaunch must be submitted by the end of the week.
The sources also addressed the possibility of offering current FTX creditors a stake in the reformed cryptocurrency exchange in addition to other types of payment.
It is anticipated that the renamed FTX would choose a different name for the relaunched business and not use its former name or any variations of it.
A reboot, according to the FTX team, which is chaired by John Ray, is the best course of action to guarantee that creditors receive the best possible result in terms of payback. The legal department of FTX said in April that they planned to finish the new exchange’s opening sometime in the second quarter of 2024.
The relaunch of FTX as a new exchange represents the company’s resolve to address its financial difficulties and offer a new beginning. As it navigates diverse market dynamics and regulatory constraints, it exemplifies the industry’s resiliency and adaptability.