Companies • January 31, 2024, 12:28PM EST
Published 1 minute earlier on
Quick Take
- An FTX lawyer said during a Wednesday hearing that plans for a re-launch of the exchange won’t come to fruition.
Bankrupt cryptocurrency exchange FTX said it plans to repay former customers in full even though it has abandoned plans to restart the exchange. "We currently anticipate that we will have sufficient funds to pay all allowed customer and creditor claims in full," FTX lawyer Andrew Dietderich told a judge on Wednesday during a hearing. FTX, which was once led by former CEO Sam Bankman-Fried, filed for bankruptcy in late 2022. Bankman-Fried was found guilty of defrauding customers, lenders, and investors of FTX a year later. Dietderich also said FTX does not plan to re-start the platform. Businesses FTX bought for hundreds of millions of dollars proved to have little value, and there are not many interested buyers, the lawyer said. "A related disappointment is FTX 2.0. We still have valuable customer data and information to monetize," Dietderich said. "But after an exhaustive effort, no investor is ready to commit the needed capital to a restart of the offshore exchange." FTX CEO John J. Ray III told the Wall Street Journal in June that the company has "begun the process of soliciting interested parties to the reboot of the FTX.com exchange." FTX would have likely rebranded as part of any restart, the news outlet said at the time, citing people familiar with the discussions. Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures. © 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.No investors
About Author
Sarah is a reporter at The Block covering policy, regulation and legal happenings. Before, Sarah was a reporter with CQ Legal writing about securities regulation, which is where she first started reporting on crypto. Sarah has also written for The Bond Buyer and American Banker, among other finance-related publications. She graduated from the University of Missouri and earned a degree in print and digital journalism. Sarah is based in Washington D.C., and is an avid coffee lover. You can follow her on Twitter @ForTheWynn.
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