FTX lawyers said at the hearing in Delaware that when the reorganization plan was submitted in July this year, the restart of FTX operations may be confirmed in the second quarter of next year. As soon as the news came out, the FTX platform currency FTT rose by more than 100% .
But how exactly does it restart?
FTX restarts operations: a lot of capital needs to be raised
According to The Block, Andy Dietderich, a lawyer at the law firm Sullivan & Cromwell in FTX's bankruptcy reorganization team, said: "The fire in the trash can has been extinguished." FTX has recovered $7.3 billion worth of cash and digital assets. Restarting FTX would require raising significant capital, or using legacy funds.
FTX restart option? User arrears exchange for equity
Lawyer Andy Dietderich said that there are many options for FTX to restart. One possible way is that users can choose to convert the debt owed by FTX into equity in the investment exchange.
Not long before FTX declared bankruptcy, there were calls for FTX to issue debt tokens instead of the bankruptcy declaration. The founder of FTX, SBF, also expressed regret on social media after declaring bankruptcy several times.
FTX will submit restart plan in July
The FTX team told the court that preliminary plans to restart FTX will be submitted in the third quarter of this year.
FTX's current CEO and head of bankruptcy restructuring, John Ray III, mentioned the possibility of restarting in January this year, and FTX Japan is also discussing the possibility of restarting operations .
SBF's application for US$10 million insurance was rejected
Before the trial, SBF hoped to use the 10 million US dollars of FTX legal insurance as legal defense funds, but was rejected during the trial.
