A May 22 court filing in the U.S. bankruptcy court appears to suggest that a plan to restart FTX has been set in motion.
FTX creditors tracking the exchange’s plans to reopen the trading platform pointed to a compensation report filed by the firm’s bankruptcy lawyers which indicated the process was close to being finalized.
FTX CEO John Ray III confirms FTX 2.0 plans. pic.twitter.com/FeCXOvdrt0
— FTX 2.0 Coalition (@AFTXcreditor) May 22, 2023
FTX CEO John Ray III, in charge of overseeing the bankruptcy proceedings, listed several line items in his billable hours that seemed to imply this was the case. Included in this list was a term sheet for structuring the exchange, reviewing the FTX 2.0 next steps summary and finalizing material related to the reboot for distribution.
The document also suggests that Ray has been in constant communication with investment bank Perella Weinberg Partners LP regarding the 2.0 reboot plan over the last weekend.
FTX’s native token FTT gained as much as 15% on Monday but had retreated to a price of $1.08 at the time of writing. The token rallied despite the fact that several industry watchers have asserted that FTT will likely have no connection with a restarted FTX.
2/ why? A. FTT had no legal status relative to FTX. Why would FTX 2.0 “gift” value to a random set of unrelated token holders? Why would legal creditors allow that? B. Likely illegal; FTT as an unregistered security subject to every imaginable legal encumbrance…
— Ari Paul ⛓️ (@AriDavidPaul) April 13, 2023
Last month, FTX’s lead bankruptcy attorney Andrew Dietderich revealed in a court hearing that a potential exchange restart was being considered as part of a reorganization plan that would return assets to creditors.
A week after Dietderich’s statements, the momentum behind this plan appeared to be building. Bloomberg reported that venture capital firm Tribe Capital was looking to lead a $250 million fund-raising campaign to restart FTX.
Incidentally, the final item on Ray’s list of billables was a review and comment on the FTX 2.0 bidder list.
Other signs that an exchange restart is in the works were detailed in April court filings, where lawyers disclosed a search and on-boarding process for new developers to work on a “restart project plan.”