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Bankrupt cryptocurrency exchange FTX is one step closer to restarting a brand new exchange.
According to a Wall Street Journal report on June 28, FTX’s head of restructuring, John Ray, said the company “has begun the process of engaging stakeholders in the reboot of the FTX.com exchange.”
Sources familiar with the matter said the firm is in talks with investors to fund a possible reboot. Blockchain Figure Lending Company is among the parties that have shown interest in the process.
Cointelegraph reached out to Figure but received no immediate response.
It is reported that potential bidders have until the end of the week to submit letters of intent – a document that sets out the conditions for their participation.
Notably, sources said current FTX lenders could potentially be offered a stake in a reorganized cryptocurrency exchange, among other forms of compensation.
Importantly, “talks include possible compensation for certain existing customers, possibly by offering them stakes in any reorganized entity”.
We expect customers to get recovery and/or equity tokens in FTX 2.0.
— FTX 2.0 Coalition (@AFTXcreditor) June 28, 2023
FTX is not expected to be rebranded as “FTX 2.0” or some other derivative of its original name, but instead decides to rebrand itself as an organization with a different namesake.
Overall, it appears that Ray and the rest of the FTX team see the reset as the best possible way to ensure creditors achieve the best possible outcome in terms of debt repayment.
In April, FTX’s legal team said it expects the launch of the new exchange to be completed sometime in the second quarter of 2024.
Related: Decision to challenge mainstream media’s decision to protect FTX clients: report
According to the June 26 recovery progress report, there is still a hole in FTX’s books of about $2 billion. Efforts to recover these missing funds have been further complicated by the alleged misuse of client assets by key FTX management.
On June 27, FTX filed a lawsuit against Daniel Friedberg, a former FTX regulator who is believed to have featured as an unnamed party in many of the lawsuits. fraudulent transfers and loans.
The Missing Funds Report also details a number of alleged investments in venture capital firms, a $243 million portfolio of Bahamian real estate, and numerous donations to nonprofits.