Bidding Deadline, Relaunch Plans for FTX 2.0 Revealed: Bloomberg

Bloomberg reported that defunct cryptocurrency exchange FTX is really considering rebooting its operations and may likely release a new version of the exchange by next year. 

The FTX Relaunch Plans

This is expected to bring about a revival in the market activity that had been subdued following the implosion of the market in November 2022. So far, the FTX estate has contacted over 75 bidders as a way of measuring industry players’ interest in supporting the relaunch of the cryptocurrency exchange. Several bids have been submitted and are currently being scrutinized.

Precisely, managers of the estate have confirmed that due diligence and information sharing are ongoing. The deadline for the submission of new bids has been scheduled for September 24th. Coingape recently reported that TRON founder Justin Sun is considering bidding for the exchange’s tokens and assets.

Potential structures for the launch of FTX 2.0 are been considered. Based on a filing, it could either be “an acquisition, merger, recapitalization or other transaction to relaunch the FTX.com and/or FTX US exchanges.” On October 16th, the baseline offer otherwise known as a stalking-horse bid, will be selected alongside an amended plan filed by year-end.

The estate has recovered a total of $7 billion in assets including $1.16 billion worth of Solana (SOL), $560 million worth of Bitcoin (BTC) and $192 million in Ethereum (ETH) as part of a crypto portfolio worth $3.4 billion.

Concerted Efforts From FTX Executives

FTX imploded in November following some claims that Sam Bankman-Fried, the Chief Executive Officer (CEO) at that time, was mishandling customers’ deposits. Thereafter, SBF resigned and John Ray III took over as the CEO. 

Upon taking over, John began to imply that the exchange may be revived and a look at one of his billing report confirmed that the reboot was already in works. During that time, he considered the 2.0 bidder list amongst many other items. The news of the relaunch triggered mixed feelings from the broad crypto community. 

Many crypto enthusiasts argued that it would be very improbable citing certain issues including persistent technical failures, notably high latency, and software bugs. These aforementioned challenges plagued the cryptocurrency exchange from the beginning and played a crucial role in its implosion which last year.

By August, FTX 2.0 plans had progressed significantly and plans were set in place to complete cash payment to creditors.