Crypto exchange FTX is working on restart, but a lot of damage to customers

Collapsed Crypto Exchange FTX, Debris Collector John J. Working under Ray, the company is seeking permission from a US court to restart and pay millions of dollars to key suppliers. This way, the company might still be somewhat salvageable, Ray thinks. However, that didn’t stop 1 million customers and other investors from losing billions.

A week ago it was announced that a major crypto exchange in the US had applied for a fee deferral. FTX and dozens of subsidiaries have opted for so-called Chapter 11 bankruptcy proceedings. This procedure enables companies that can no longer meet their financial obligations when the company prepares for the sale or restructuring of parts.

Founder Sam Bankman-Fried’s crypto empire began to falter due to the devaluation of FTX’s own currency, FTT. The crypto exchange was struggling with liquidity problems due to that downturn. Subsequently, competing crypto exchange Finance announced its intention to acquire FTX, but decided not to after due diligence. A lot of money from FTX customers can disappear without a trace.

Ray, who was appointed CEO to salvage what could be salvaged, says finances are still in order at many FTX-affiliated companies. According to him, this is evident in the research carried out in recent days. The new boss, a big name in demolishing US corporate bankruptcies, is asking all employees, customers and other stakeholders to be patient as he and his team try to make things right.