The crashed crypto exchange FTX has retrieved around $7.3 trillion in liquid assets, a US Bankruptcy Court heard last week, according to FTX lawyers.
FTX debtors had reported that 4 company silos had approximately $4.8 billion in scheduled assets as of November 2022.
FTX’s legal team said the company could be restarting its crypto exchange operations in Q2 2024, potentially by April next year, and soon after the announcement, the FTX token FTT saw a price surge from $1.32 to $2.80, an increase of over 112%.
During a January 2023 interview, current FTX CEO John Ray showed interest in reviving the bankrupt exchange. The token again rose as high as $2.37 when Ray said he had tasked a group with exploring a restart of the exchange’s international arm.
Read: FTX users’ debt is now a token
To encourage trading, FTT offered investors lower fees, among other incentives, But almost as quickly as it shot up, FTT reversed course and sunk back down to $2.04, and at the time of publishing was ever lower at $1.84.
FTT remains over 97% lower than its all-time high of $84.18, set in September of 2021.
It is now believed that restarting the company would likely require raising capital as there are questions about whether the bankruptcy estate should use its funds to finance the potential restart or seek resources from third parties.
One option involved letting FTX customers who lost millions divert a portion of what they will eventually recover in return for ownership in a revived exchange.
FTX filed for Chapter 11 bankruptcy in 2022 after a steep drop in FTT sparked massive withdraws from FTX customers, an event that uncovered the truth about the exchange not holding sufficient reserves of customer assets to satisfy traders’ rush for the exit en masse.
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