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FTX Doctor Frankenstein Tries to Revive Dead Crypto Exchange

except TerraFTX is perhaps the biggest synonym for failure in the crypto industry. This three-letter word is so tangled in mud thatIt is difficult to distinguish it from a cow cutlet. However, a fair number of people working on the exchange think that people will be interested in a reboot. So much so that the new FTX CEO actively worked on the so-called “2.0”.

As first reported decipherdocuments released on Monday by FTX in connection with the ongoing bankruptcy disclose The current CEO of FTX, John Ray III, has spent several hours working on a possible “restart” of the exchange. It is reported that on April 17 Ray spent almost an hour and a half going over the steps needed to restart FTX, and on the 19th of the same month it took him less than an hour to “view and complete 2.0 Reloading Exchange Material for Distribution”. April’s last item was “Review and Comments on Bidder List 2.0”.

Some of those bullet points mention companies, such as investment bank Perella Weinberg Partners LP, that provided steps for a possible reboot plan. Ray also spoke to cybersecurity firm Sygnia about “strengthening the exchange.” Who would really be interested in bringing back this Frankenstein monster? Fine, bloomberg It was reported last month that venture capital firm Tribe Capital had met with an FTX creditor committee back in January to propose a fundraising campaign. Tribe has previously invested in FTX and any buyout will reportedly go towards keeping the name.

For each of these items, Ray charged the company thousands dollars an hour for his efforts. In April alone, he took a total of $290,160 for his work. In summarizing his work, Ray stated that he spent time implementing several exchange elements such as Information Security and money management “which did not exist or did not exist to an adequate degree prior to the appointment of Mr. Ray”.

Ray previously mentioned in January this he was pressured by interested parties to restart the exchange, and at least at the time he was inclined towards the idea. He told The Wall Street Journal at the time, “If there is a way forward in this, then we will not only study it, we will make it.” Andy Dietderich, a lawyer for bankrupt cryptocurrency exchange, said last month that the management of the exchange thought about restarting bankrupt company because the situation has “stabilized”. According to his presentation, in the second quarter, FTX will need to decide if a full restart is possible.

Ray earlier called FTX “a complete failure of corporate control” and reported that former FTX CEO Sam Bankman-Fried and his executive friends were such bad managers that they joke about losing millions of dollars at once. FTX has struggled to get back the billions in customer funds that went missing, but Dietderich said in April that the company had recovered $7.3 billion of a missing $9 billion, due in part to rising bitcoin prices.

Meanwhile, the Bankman-Fried name is as tarnished as his former stock exchange. He faces more than a dozen criminal cases claiming everything from fraud to campaign finance violations to bribing Chinese officials. But beyond that, who wouldn’t want to be associated with the big old FTX brand?


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