According to FTX’s legal team, no investors were “ready to commit the needed capital” to launch FTX 2.0, citing the failures of former CEO Sam Bankman-Fried.
The defunct cryptocurrency exchange FTX said its restructuring plans did not include a “reboot” of the firm but focused on repaying customers in full.
In a Jan. 31 hearing in United States Bankruptcy Court for the District of Delaware, FTX attorney Andy Dietderich from law firm Sullivan and Cromwell said the exchange could “cautiously predict” fully repaying users and creditors but added this was “an objective” and not a “guarantee.” He said that “after an exhaustive effort,” there was no plan to restart FTX — dubbed FTX 2.0 — in its current Chapter 11 bankruptcy plan.
“Based on our results to date and current projections, we anticipate filing a disclosure statement in February describing how customers and general unsecured creditors [...] with allowed claims will eventually be paid in full,” said Dietderich. “No investor is ready to commit the needed capital to a restart of the offshore exchange, nor has a buyer emerged for that exchange as a going concern.”
