New FTX CEO plans to revive crypto company

Alade Abayomi ADeleke
Alade Abayomi ADeleke

Alex Omenye

 

FTX’s new chief executive, John Ray, is looking into the possibility of reviving the platform.

 

 

John told Wall Street Journal that he has set up a taskforce to explore the restarting FTX.com to “recover more value” for those who lost their money when the company filed for bankruptcy in November last year.

 

 

The company was valued at $32bn (£26bn), but it filed for bankruptcy and it was estimated that $8bn worth of funds were missing.

 

 

The founder and former chief executive of the exchange, Sam Bankman-Fried has been accused by investors and customers of defrauding them to pay debts incurred by his crypto-focused hedge fund, Alameda Research. He however pleaded not guilty to fraud charges.

 

 

The collapse of FTX was one of the many key events in what was dubbed a “crypto winter” for firms.

 

 

The first big shock came last May with the collapse of two tokens – Terra Luna and TerraUSD – owned by Terraform Labs which broke the camel’s back last year May.

 

 

This fall led to $400bn (£318bn) being wiped from the value of Bitcoin and other crypto coins and by September, a red notice by INTERPOL was issued to law enforcement agencies for the arrest of Terra founder Do Kwon.

 

 

Things took a hard turn in November with the collapse of FTX, one of the biggest exchanges, one of the most trusted platforms, and an entry point for millions of customers, but filed for bankruptcy because of instability.

 

 

In December, the 30-year-old founder, SBF was extradited from the Bahamas, and charged to court where he pleaded not guilty and was released on $250m bail.

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