© Reuters
Investing.com – FTX may reopen for digital after the cryptocurrency exchange’s dramatic crash last year, according to reports Wednesday, citing the company’s attorneys.
The prospect of a reboot sent FTX’s native token skyrocketing during afternoon trading.
FTX will consider restarting its exchange operations, which could happen in the second quarter of 2024, according to comments from the company’s lawyers during a bankruptcy court hearing.
And according to a Reuters report, FTX attorney Andy Dietderich said during the hearing, “The situation has stabilized and the dumpster no longer exists.”
FTX CEO John Ray told the Wall Street Journal in January that it was possible to revive the exchange’s business.
Separately, Dietderich also said Wednesday that FTX is beginning to consider its future as the legal team continues to work to determine the reasons for the exchange’s failure under Sam Bankman-Fried’s leadership. The FTX founder faces multiple criminal charges following the November 2022 stock market implosion.
FTX’s FTT token more than doubled from $1.32 to $2.74, following news of a potential reboot and an update from lawyers on asset recovery.
FTX lawyers told the bankruptcy court they recovered more than $7.3 billion in cash and cryptoassets, an increase of more than $800 million since January, Reuters reported. Lawyers are looking for assets to repay FTX lenders and clients.