New FTX Chief Mulls Reviving the Exchange

The current chief executive of the bankrupt FTX exchange, John Ray, is looking into bringing back the defunct crypto platform. He spoke to the Wall Street Journal (WSJ) saying he intends to set up a task force to explore reviving FTX.com.

FTX was valued at $32 billion before it went belly up and filed for bankruptcy protection in November last year. Presently, FTX stands at $8 billion in losses. Bankman-Fried, the founder and previous chief executive, has been under fire for allegedly defrauding FTX’s clients and investors to pay off debts in his hedge fund, the Alameda Research. Bankman- Fried has since pleaded not guilty to the fraud charges. The clients who lost money through the establishment are still unsure if they will ever recover their monies.

Ray is looking into the possibility of reviving the platform as opposed to liquidating the assets or ultimately selling the enterprise. FTX was not available to respond to BBC’s comment request. Earlier, Ray lashed out at the entity’s management regarding the modus operandi of the fallen crypto exchange, citing a complete failure of basic controls. Since taking over, Ray said that what he discovered was very peculiar.

The collapse of FTX was a major key event in a series of events dubbed “crypto winter” for the crypto industry. The first shock wave came in after the failing of two tokens: the Terra Luna and the TerraUSD, both under Terraform Labs. This event led to a whopping $400 billion financial hemorrhage, causing many other crypto currencies, including Bitcoin, to lose market value.

In September, the International Police (Interpol) issued a red alert to enforcement agencies for the capture of Do Kwon, the founder of Terra. November came with an earthquake in the crypto market when FTX, one of the biggest players, collapsed, impacting millions of people at the entry point. FTX was deemed one of the most trusted crypto enterprises, but it fell into bankruptcy days after its finances were exposed to be shaky.

Bankman-Fried  said in a BBC interview that he did not deliberately go out of his way to do wrong as far as his business was concerned. In December, he was extradited from the Bahamas to the United States, where he pleaded not guilty on fraud charges. He was released on a $250 million bail after denying the allegations.

As the blockchain and crypto industry recovers from the fallout of FTX, entities such as Stronghold Digital Mining Inc. (NASDAQ: SDIG) have an opportunity to demonstrate their resilience to any shocks that this nascent industry is bound to face as it grows and matures.

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