Plans for FTX 2.0 in the Works

In a new staffing and compensation report submitted on Monday to the United States Bankruptcy Court for the District of Delaware, plans to relaunch the bankrupt cryptocurrency exchange FTX were confirmed.

According to the letter, the troubled crypto exchange’s acting CEO John J. Ray III spent hours in April engaged in a variety of activities to come up with a revival strategy.

After FTX recovered around $7.3 billion in distributable assets last month, Andy Dietderich, the exchange’s lawyer, stated that the legal team would talk about the next steps for a potential relaunch and intended to submit a draft reorganization plan in July. He continued by saying that it was anticipated that the proposal will be confirmed in Q2 2024.

A few days later, news broke that San Francisco-based venture capital company Tribe Capital was thinking about launching a $250 million fundraising drive to support FTX’s decision to restart operations. According to reports, Tribe plans to lead the round with $100 million from limited partners and itself. Arjun Sethi, the company’s CEO, has already spoken with the committee of unsecured creditors at FTX about the plan.

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