FTX has returned $7.3 billion in assets and will consider relaunching the exchange

Sam Bankman-Fried’s unsuccessful cryptocurrency exchange filed for insolvency in November 2022 and has been involved in litigation since then.

According to the creditors’ legal team, the cryptocurrency exchange FTX may contemplate resuming operations in the future.

During a hearing on April 12 in the United States Bankruptcy Court for the District of Delaware, FTX’s attorneys from Sullivan & Cromwell stated that the company had recovered approximately $7.3 billion in liquid assets. As of November 2022, according to a March filing from the debtors, the four FTX company silos had approximately $4.8 billion in scheduled assets, and an investigation into the assets is ongoing.

According to the legal team, FTX will also contemplate resuming its crypto exchange operations in the second quarter of 2024, which would imply an April relaunch. In a January interview, FTX CEO John Ray was reportedly considering reviving the insolvent exchange.

When attorneys hinted at a possible relaunch of the exchange, the price of the FTX Token skyrocketed from $1.32 to $2.80, a gain of about 112%. Since the company’s bankruptcy filing, the token price had remained between $1 and $2.

During the same hearing, the bankruptcy judge denied a motion that would have allowed the court to prioritize Sam “SBF” Bankman-Fried’s legal fee reimbursement. Judge John Dorsey stated:

“I have zero evidence to establish cause in this case. Mr. Bankman-Fried has not presented any evidence regarding the fairness of the situation; what damage will he suffer? I do not know what other insurance policies or private assets he has access to that would allow him to cover these expenditures and later recover them under this policy.”

The debtors said that a Swiss court had approved a petition permitting the sale of the company’s European branch, FTX Europe AG, prompting the bankruptcy court proceedings. FTX Europe AG, along with 133 other subsidiaries, was included in FTX’s November 2022 Chapter 11 petition filed in U.S. bankruptcy court.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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