In July, FTX lawyers will present to the bankruptcy court a plan to reorganize the exchange with a possible restart, according to The Block. The price of the FTT token rose by 90%.
“The full chaos is over,” said Sullivan & Cromwell partner Andy Ditterich during the hearings.
The attorney noted that the company has total assets of $7.3 billion. filed for bankruptcy with FTX and more than a hundred affiliated entities in November 2022. In a March presentation, representatives of the exchange estimated the total shortfall to cover client and creditor claims at $8.7 billion, of which about $1.6 billion is in bitcoin.
But when Judge John Dorsey asked about the prospects for restarting the exchange, Ditterich did not give a direct answer. In his words, the step would require attracting “significant capital.” One possible solution he named was giving FTX clients the option to invest a portion of their funds in shares of the revived platform.
The preliminary schedule presented to the court contemplates filing a detailed reorganization plan in the third quarter.
First mentioned the possible resumption of FTX operations in January by current CEO John Ray.
Alongside Ditterich, the idea of restarting the exchange was independently voiced by Zane Takett, former head of institutional sales at FTX. In his view, the platform should be revived with all the products it offered before the collapse, adding a market for tokenized claims.
The utility token FTT rose almost 90% in the last 24 hours and is trading at around $2.50 (CoinGecko). At times, quotes reached above $3.
The current price of the coin is 97% below its peak reached in September 2021.
As a reminder, lawyers and financial advisers billed FTX invoices totaling more than $30 million in February.