NEW YORK, NY, Tuesday, February 6, 2024 – Formerly prominent exchange FTX has officially abandoned its efforts to relaunch its platform. 1
Restructuring advisers would need to examine the millions of claims that have been filed against FTX to weed out those that are not legitimate, Bloomberg News reported, citing Andrew Dietderich as saying this during a Wednesday (January 31) court hearing in Wilmington, Delaware.2
The company, which filed for bankruptcy in November 2022, cited a lack of sufficient investor interest and ongoing legal challenges as key factors in the decision.
Instead, it said it would prioritize liquidating its remaining assets to repay creditors.
The company claims it has already recovered over $7 billion in assets for this purpose.
Analysts said that the decision marked the end for FTX, which once held the position of the second-largest crypto exchange globally.
Its collapse in late 2022 had ripple effects throughout the industry, causing significant losses for investors and raising concerns about regulatory oversight.
The founder and ex-CEO of the now defunct FTX, Samuel (Sam) Bankman-Fried, has been indicted on fraud charges and is facing trial over the collapse of the exchange.
The US Attorney’s Office said in its report (December 13, 2023) that SBF has been indicted with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and commit campaign finance violations. 3
- Reuters: https://www.reuters.com/technology/ftx-abandons-efforts-re-start-its-crypto-exchange-2024-01-31/[↩]
- Bloomberg: https://www.bloomberg.com/news/articles/2024-01-31/ftx-expects-to-repay-customers-in-full-bankruptcy-lawyer-says[↩]
- DOJ: https://www.justice.gov/usao-sdny/pr/united-states-attorney-announces-charges-against-ftx-founder-samuel-bankman-fried[↩]
