FTX seeks to reopen after scandal and fraud allegations

Cryptocurrency platform FTX, which collapsed last year, is in the process of reopening under new management, The Wall Street Journal (WSJ) reported Wednesday.

FTX CEO John J. Ray III confirmed to the WSJ that the company has begun discussions with various stakeholders to explore the possibility of reopening FTX.com. Ray took over as CEO last November after the company filed for bankruptcy.

Anonymous sources quoted by the WSJ revealed that FTX has been in contact with investors to establish a partnership that allows the resumption of operations of the platform, although it is likely that this will be done under a new brand.

At the time of its collapse, FTX was one of the leading cryptocurrency platforms globally, and the current management considers its business model to be viable, attributing the problems to the alleged criminal conduct of the former perpetrators.

The cryptocurrency platform’s crash occurred quickly last November after many users began withdrawing their funds due to reports questioning the company’s solvency.

Following the collapse, US authorities charged FTX founder Sam Bankman-Fried and other officials at FTX and Alameda Research, its investment arm, with engaging in massive fraud in the management of the business. This made Bankman-Fried a billionaire and one of the most influential figures in the world of cryptocurrencies.

The administrators who took over the company after the bankruptcy revealed that Bankman-Fried left a deficit of approximately $9 billion. They have been working to remedy this situation by selling assets and recovering funds through donations and investments made with client money.

Bankman-Fried is currently awaiting trial, facing multiple fraud charges. His most recent attempt to dismiss some of the allegations was rejected last Tuesday.

So far, three of his ex-partners have admitted their guilt before the Prosecutor’s Office and have shown themselves willing to cooperate with the investigations.

K. Tovar

Source: Descifrado

(Reference image source: Jonathan Borba, Unsplash)

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