summary
- The platform’s priority is now to fully reimburse its customers’ funds.
- FTX has scrapped its exchange reboot plan due to insufficient capital.
- FTT tokens experienced a 35% decline as whales began selling them in response to the platform’s disclosure.
FTX, a bankrupt crypto exchange, has scrapped its plans to relaunch as FTX.com and opted for liquidation to fully reimburse customer funds. Previously, FTX had proposed a reboot with a focus on international services and a creditor-repayment plan. Reports suggest FTX struggled with customer claims and sold crypto holdings for funds. In a court hearing, FTX’s attorney discussed efforts to repay locked customer funds, with over $7 billion in assets recovered. Despite negotiations, FTX couldn’t secure enough capital to relaunch, highlighting challenges in infrastructure development. This underscores Sam Bankman-Fried’s difficulties in building essential technology and administration for success. The attorney cited,
“FTX was an irresponsible sham created by a convicted felon. The costs and risks of creating a viable exchange from what Mr. Bankman-Fried left in a dumpster were simply too high.”
Spot On Chain, a prominent analytics platform, highlighted a significant drop of approximately 35% in FTX’s FTT token, currently trading at $1.72. The decline was attributed to internal exchange transactions, with Spot on Chain noting that “whales are playing the game here” in response to news that the defunct crypto exchange won’t be restarted.
