FTX, the defunct cryptocurrency exchange, is considering a relaunch, according to lawyers representing the exchange’s debtors. They revealed at a hearing that the restructuring team had collected $7.3bn in liquid assets. The team is discussing options for reviving the exchange, including tax and long-term implications. However, the exchange had significant control failures in finance, accounting, and digital asset management, according to an interim report by the restructuring team. The report also said senior officials commingled and misused corporate and customer funds and failed to implement effective security controls. The news of a possible relaunch caused FTX’s token FTT to rise 70% against the US dollar.
FTT, the exchange’s crypto token, was illicitly released from its main deployer address last year. The exchange holds FTT in a highly-consolidated manner; the top 10 wallets hold 94.19% of the circulating supply.
Should FTX be given a second chance or is it time to move on? The exchange’s future, tax and other regulatory implications, and the prospective value of FTT, are all being closely watched by market participants.
