WSJ Reports FTX Initiates Discussions for Reviving Global Cryptocurrency Exchange

Bankrupt FTX Presses Forward in Relaunching International Crypto Exchange, Reports WSJ

According to an article by the Wall Street Journal, FTX, despite its bankruptcy status, is actively working on resurrecting its primary global cryptocurrency exchange. The CEO of FTX, John Ray, revealed that the company has initiated the process of reaching out to potential stakeholders for the revival of the FTX.com exchange. Sources familiar with the matter stated that discussions have been underway with investors, exploring options such as a joint venture to support the reestablishment of the exchange. When approached for comment, FTX’s creditors declined to provide any statements regarding the report.

FTX initially filed for Chapter 11 bankruptcy protection in the United States back in November, following a high-profile collapse that had a significant impact on the digital assets industry. The firm faced substantial liquidity challenges as customers of Sam Bankman-Fried’s crypto exchange withdrew billions of dollars just before the collapse. A proposed rescue deal with competitor exchange Binance also fell through, leading to the widely publicized downfall of FTX. Since then, the crypto industry has faced increased regulatory scrutiny, while FTX’s founder, Bankman-Fried, is currently facing allegations of fraud in a criminal lawsuit brought forth by the U.S. government.