During a Wednesday hearing, an FTX lawyer revealed that the cryptocurrency exchange has abandoned plans for a re-launch, despite initially indicating otherwise. Filing for bankruptcy in late 2022, FTX’s former CEO, Sam Bankman-Fried, was subsequently found guilty of defrauding stakeholders. The lawyer stated that although FTX intends to repay former customers in full, the platform won’t be revived. Challenges arose as businesses acquired by FTX proved less valuable than anticipated, with limited interest from potential buyers. FTX 2.0, an attempt to monetize valuable customer data, faced hurdles as no investors were willing to commit the required capital for a restart. The disclosure raises concerns for creditors, as the repayment in full is based on the petition date values, which might not align with current market conditions.
FTX Abandons Relaunch Plans: Former Customers to be Repaid in Full, but Challenges Loom.
