The crypto exchange FTX could be back in business in the future. Judge John Dorsey explained: "Frankly, I have no evidence to establish why. Mr. Bankman-Fried has not presented any evidence regarding the balance of equity, the damage he is about to suffer.
I don't know what other insurance policies or assets has private access that allows him to cover these costs and then recover them later under this policy." At an April 12 hearing in the US Bankruptcy Court for the District of Delaware, attorneys for Sullivan & Cromwell, representing FTX, said the crypto firm recovered about $7.3 billion in liquid assets.
Debtors reported in March that FTX's four corporate silos had approximately $4.8 billion in assets scheduled as of November 2022, with an investigation still ongoing into the assets held by the company.
FTX may be back in business!
The price of the FTX token jumped from $1.32 to $2.80 around the same time as lawyers announced the exchange's potential reboot, an increase of more than 112%. Since the company's bankruptcy filing, the token's price had mostly remained between $1 and $2.
According to the legal team, FTX will consider restarting operations of the crypto exchange in the second quarter of 2024, suggesting a reboot as early as April. According to John Ray, CEO of FTX, in an interview released in January, the idea of reviving the bankrupt exchange had been considered.
In the same hearing, the bankruptcy judge denied a motion that would have allowed the court to prioritize the reimbursement of the legal fees of Sam Bankman-Fried, the former CEO of FTX. The judge left it up to SBF to present evidence to the court regarding the motion in the future.
The bankruptcy court procedure follows the debtors' announcement that a Swiss court has granted the application for the sale of FTX Europe AG, the company's European subsidiary. FTX Europe AG, along with 133 other subsidiaries, was part of Chapter 11 of FTX filed in US bankruptcy court in November 2022.
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