FTX abandons the idea of restarting the exchange, opting for a liquidation that aims to fully repay customers.
FTX has officially halted its efforts to resume exchange operations. As revealed on Wednesday, January 31st, by the company’s attorney, Andy Dietderich, after months of discussions with potential buyers, the exchange failed to find investors to restart the platform. He also stated that the company’s focus has shifted towards liquidating its assets to ensure full reimbursement to customers.
The attorney highlighted the high costs and risks associated with reconstructing a viable exchange based on the remnants left by founder Sam Bankman-Fried. Despite these challenges, FTX has made strides in selling its assets, managing to secure over $7 billion to repay customers. These funds will be distributed in fiat currency based on market values from November 2022. This decision has led to customer complaints, considering the significant increase in the price of Bitcoin since then.
The recovery of funds
To ensure reimbursement to its customers, FTX has recently sold almost 75% of its shares in the Grayscale Bitcoin Trust (GBTC), securing approximately $600 million from the sale. This move is part of the liquidation plan of over $3.6 billion approved by a U.S. court in September 2023.
