By John Ikani
FTX is considering the possibility of reopening in the future, according to lawyers from Sullivan & Cromwell who made the announcement during a court hearing on Wednesday.
The company’s lead attorney, Andy Dietderich, also revealed that the defunct exchange has recovered $7.3 billion in liquid assets, which is significantly higher than the $1.9 billion reported in January.
The hearing, which took place at a court in Delaware, United States of America, reportedly discussed several potential options, including allowing FTX’s creditors to convert a portion of their holdings into a stake in a reopened exchange.
Dietderich explained that customers could have the option of taking part of their proceeds in exchange for some form of interest in the exchange going forward.
However, he emphasized that the possibility of reopening FTX is just one of many options being considered, and no final decisions have been made.
The attorney acknowledged that there are as many opinions on this issue as there are professionals involved in the case, and they are still deliberating on the best course of action.
The news of the potential reopening of FTX has caused the price of its FTT token to more than double.
Last November, FTX had collapsed, and its former leader, Sam Bankman-Fried, was indicted on fraud and conspiracy charges.
Bankman-Fried was accused of stealing billions of dollars in FTX customer funds to offset losses at his hedge fund, Alameda Research, and conspiring to violate campaign finance laws while bribing Chinese officials. He pleaded not guilty to the charges.
