A FTX attorney said in court on Wednesday that the company may utilize funds set aside to pay back consumers to relaunch its bankrupt cryptocurrency exchange because the endeavour would demand a large sum of money.
Andrew G. Dietderich, an FTX attorney with the law firm Sullivan & Cromwell, told US Bankruptcy Judge John T. Dorsey that the corporation is still debating whether to restart the exchange, which allowed users to trade digital assets before FTX failed. A relaunch or abandonment of the idea entirely could also be options for the corporation.
According to Dietderich, there are as many perspectives on this as there are professionals in this case, which is a lot. The first version of the FTX trading software was more of a “facade” than a legitimate, well-functioning exchange.
According to him, FTX may spend some of the $7.3 billion in cash, cryptocurrency, and other assets it has already amassed, or it could find additional investors eager to put money into the project. This money is being kept until FTX receives final court approval for a creditor payout plan, which is not probable until the next year.
According to him, the corporation is in discussions about restarting the exchange with the official committee of unsecured creditors.
The business was in court asking for extra time to create a strategy for paying off its creditors. Dorsey said that the corporation would have until September 7 to file the plan. Creditors would then be able to submit their own version.
In the second quarter of the next year, according to Dietderich, the business plans to obtain final court permission for the proposal.
