FTX reboot could falter due to long-broken user trust, say observers

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FTX CEO John Ray said he was open to the idea of ‘rebooting’ the exchange, though some industry observers have questioned the logic.

Crypto industry observers have been skeptical of FTX CEO John Ray’s potential revival of the bankrupt crypto exchange.

reviving the crypto exchange as part of his efforts to make the users whole.John J.The Wall Street Journal, John J.took over the reins in November , has set up a task force to explore restarting FTX.

Ray noted that despite top executives being accused of criminal misconduct, stakeholders have shown interest in the possibilities of the platform coming back — seeing the exchange as a “viable business.” In comments to Cointelegraph, Binance Australia CEO Leigh Travers believes it will be difficult for FTX to secure a license again, particularly as the industry moves into a new year with increased regulation and oversight by regulators.S.Travers also noted that since the closure, FTX users have migrated “to other platforms, like Binance.If there is a path forward on that, then we will not only explore that, we will do it.” He questioned whether those users will “feel safe to go back.C.” He addressed the fact that FTX governance and controls were called into question, with administrators sharing details about some clients getting “preferential treatment,” including “back door switches.The future of customer funds, however, remains unclear.

” Travers noted: “How will users feel comfortable going back to a platform that treated some clients as second-class?” Digital assets lawyer Liam Hennessy, partner at Australian law firm Gadens, thinks that it would be “very difficult” for FTX, given the reputational damage and lack of trust, for any customer or investor to “come near them again.13, 2022.Ray further clarified that he will be looking into whether restarting the international exchange would recover more value for the company’s creditors than his team could potentially get from simply liquidating the assets or selling the entire thing.” Hennessy was also skeptical whether FTX will ever get approved for a license again, saying that it is “one big question mark” which entirely depends on jurisdictions.The lawyer believes that in some offshore jurisdictions, it will be easier for the exchange to get license approval, but it will be pointless if its users do not intend to return.FTX met with debtors Tuesday and said it recovered approximately $5.“To jump through the hoops the major jurisdictions will set such as the US, UK and Australia will be a serious challenge.” Related: FTX has recovered over $5B in cash and liquid crypto: Report Meanwhile, RMIT University Blockchain Innovation Hub senior law lecturer Aaron Lane told Cointelegraph, that it is “not surprising” that FTX would consider reviving the exchange business, stating that is the purpose of the Chapter 11 process — giving the company the ability to propose a plan to run the business and pay the creditors back “over time with the court’s approval.In the past two months, Ray has overhauled FTX’s structure, implementing needed corporate governance, and cut dozens of employees, he told the Journal.

” He believes that the “onus will be on FTX,” or a creditor that files a competing plan, to show that creditors will get a “better result” under the revival plan compared to liquidating FTX’s assets.Lane however also questioned whether customers will ever trust FTX again, saying it is possible that another company looking to launch a new exchange “purposes those assets” rather than developing its own interface from scratch.FTX founder Sam Bankman-Fried leaves Manhattan Federal Court after his arraignment and bail hearings in New York City on Dec..

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Absolutely the right thing to do. FTX as a product was best in class. Best to let the product do the talking. Bitfinex is a shining example that it’s possible to recover. That is what would be best for any holders of FTX tokens, they should be bought out though. The management needs to be replaced before confidence can be restored.

Thanks for Joke

FTX cryptocurrency jumps more than 35% after CEO John Ray says bankrupt crypto exchange may restartFTX’s FTT token surged in value Thursday morning after the Wall Street Journal published an interview in which CEO John Ray III said the bankrupt crypto exchange may restart. Now worth a nickel.

John Ray Says Reviving FTX is on the Table: ReportJohn Ray said that they might try to restart the FTX international exchange, if this makes sense for making creditors whole.

FTX chief John Ray says bankrupt crypto exchange could restart: reportRay was looking into whether reviving it would recover more value for the company’s customers than his team could get from simply liquidating assets or selling the platform.

New FTX CEO says the crypto exchange could be restarted: WSJCEO John Ray Ray is looking into whether reviving FTX’s international exchange would recover more value for customers than liquidating assets or selling the platform. ___Sloan___ Does he think people will trust FTX again? Ftt to the moon

FTX CEO says he is exploring rebooting the exchange: ReportJohn Ray, chief executive officer of FTX amid the firm’s bankruptcy proceedings, is reportedly considering reviving FTX Trading based on feedback from certain shareholders. bro looking for round 2 😂 Is that a good idea though? Let that shit die

FTX CEO fights to keep lawyers as calls for removal intensifyFTX CEO John J. Ray III has hit back at claims that its lead counsel Sullivan & Cromwell has a conflict of interest, suggesting to bankruptcy judge John Dorsey that FTX creditors are best served by retention of the law firm. Ftt soon 22$

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