- The new management of the FTX exchange has unveiled a plan to reorganize the company with the possibility of relaunching the offshore platform.
- The idea has drawn criticism from members of the cryptocurrency community, including Kraken’s co-founder.
The co-founder of Kraken cryptocurrency exchange Jesse Powell has commented on the possible relaunch of the FTX platform. He expressed doubts about the plan, suggesting that a better way out would be an auction:
“FTX 2.0 is worse than just starting from scratch. There is no team, no technology, no license, no banking partners. Especially since the brand is tarnished. The manager should simply sell the assets and trademark to the highest bidder. Anything else is an attempt to extract commissions from lenders.”
Alex Weiss, one of the largest traders on FTX, agrees:
“This is another attempt to distract you. So the liquidators can just sell off everything, laughing and offering to write you another check.”
Reminder, FTX and its affiliated creditors have filed a plan of reorganization for the company. It provides for “cascading” compensation to differently prioritized customer groups.
It also includes the idea of relaunching the global platform. In such a case, FTX.com clients can expect to receive a portion of the equity securities instead of being paid directly.
Before that, it was reported that the exchange did settle the dispute with Genesis Lender. FTX was demanding the company pay nearly $4 billion, but then halved the amount.
The FTX had been demanding the company pay nearly $4 billion, but then cut the amount in half.