FTX Considers Restarting Crypto Exchange, Lawyers Billing Millions

According to a Bloomberg report, attorneys for the bankrupt crypto exchange FTX, have been exploring the possibility of rebooting the company. The exchange’s legal team has examined tax issues, cybersecurity implications, and user experience testing.

Per the report, in February alone, their bill totaled $13.5 million, reflecting a significant effort by the attorneys from Sullivan & Cromwell in recovering billions of dollars in assets and allegedly cooperating with law enforcement for the potential restart of the fallen crypto exchange, formerly led by Sam Bankman-Fried.

FTX’s Ambitious Plan To Relaunch The Exchange

John J. Ray III, the newly appointed CEO of FTX, has expressed interest in restarting the company’s international exchange, FTX.com, to “recover value for its creditors and customers.” However, the crypto exchange’s bankruptcy may complicate this effort.

FTX’s collapse left creditors with at least $11.6 billion in claims and destabilized the entire cryptocurrency market with ongoing ramifications. Thus, any effort to restart the exchange would be complex, requiring significant legal and regulatory expertise to navigate the various challenges and risks.

One of the critical challenges facing FTX is rebuilding trust with its customers and the broader cryptocurrency community. This will require a concerted effort to address the issues that led to the company’s collapse, including better risk management and greater transparency around its operations.

For many, this has been the starting point of the U.S. Securities and Exchange Commission’s (SEC) crypto crackdown against the industry. According to the report, it is not clear whether the company’s new management will restart the exchange.

However, there are two possibilities for the newly appointed team for the future of the fallen exchange. First, the restart could be a limited effort to process withdrawals for customers who could not access their funds due to the exchange’s collapse. The second possibility is that the restart could be a broader effort to relaunch the entire business.

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Author: Ronaldo Marquez

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