After declaring bankruptcy in November of last year, the once-famous cryptocurrency exchange FTX has staged an incredible comeback. According to some sources, the business has recovered more than $7.3 billion in cash and marketable crypto assets, an $800 million gain since the start of the year.
Because of the significant recovery, the exchange may be revived in the second quarter of 2024.
However, the plans for reopening the exchange have raised questions from Judge Dorsey during a recent hearing. The attorney for FTX, Andy Dietderich, acknowledged the open questions surrounding the funding for the reopening and the claims on the crypto held by the debtors.
The conflict between the debtors and the official committee of unsecured creditors has further complicated matters. The latter has accused the debtors of being untrusting of individual committee members. These issues have added to the uncertainty around the potential reboot of FTX.
Despite the difficulties, FTX has accomplished much with the recovery of nearly $7.3 billion in assets. The effective resource gathering and rebound planning for the trading platform demonstrate the industry’s resiliency.
Over the last year, the market value of cryptocurrencies has expanded substantially, reaching more than $2 trillion. However, the market has seen its share of difficulties, including the demise of some well-known exchanges.
The assets of FTX have been recovered, demonstrating that the industry can suffer tremendous losses and emerge stronger. With the potential revival of the exchange, FTX has a chance to recover its position as one of the world’s largest cryptocurrency exchanges.
Moreover, the price of FTX Token, FTT, increased from $1.32 to $2.60 after the news came out.