FTX to resume operations? Plan submitted in July, confirmation in Q2 next year

At a recent hearing in Delaware, FTX's lawyer stated that the restart of operations for FTX, which was submitted for restructuring in July this year, may be confirmed in the second quarter of next year. The news caused FTX's platform token FTT to surge by over 100%.

But how exactly will the restart happen?

FTX Resumes Operations: Needs to Raise Significant Funds

According to The Block's report, Andy Dietderich, a lawyer at Sullivan & Cromwell, part of the bankruptcy restructuring team for FTX, stated, "The dumpster fire has been put out." FTX has recovered $7.3 billion in cash and digital assets. To restart FTX, significant funds need to be raised or legacy funds utilized.

Options for FTX Resumption? Users' Debt Swapped for Equity

Lawyer Andy Dietderich mentioned that there are various options for restarting FTX, one potential way being users exchanging FTX's debt for equity in the exchange.

Prior to FTX declaring bankruptcy, there were calls for FTX to issue debt tokens instead of the bankruptcy declaration. FTX founder SBF has expressed regret multiple times on social media after declaring bankruptcy.

FTX to Submit Restart Plan in July

The FTX team informed the court that the preliminary plan to restart FTX will be submitted in the third quarter of this year.

FTX's current CEO and bankruptcy restructuring head, John Ray III, mentioned the possibility of a restart back in January, and FTX Japan is also discussing the potential resumption of operations.

Former CTO Gary Wang Accuses SBF of Constant Lies

Former CTO Gary Wang stated in court that to maintain the digital fraud, SBF continuously lied to stakeholders, customers, and creditors. While FTX appeared to handle transactions and information faster and more conveniently than competitors, it was all superficial and deceptive, akin to a video game.

SBF's $10 Million Insurance Application Denied

Prior to the hearing, SBF sought to use $10 million from FTX's legal insurance as legal defense funds but was denied during the hearing.

Community Criticism: Who Wants to Use FTX Anymore

Crypto commentator Adam Cochran remarked that this exchange was run by individuals who recorded investments on spreadsheets, stored private keys in the cloud, and used backdoor systems. Who would still want to use it?