FTX has recently recouped $7.3 billion in assets and has expressed plans to restart completely. In a court hearing on Wednesday, the bankrupt exchange’s attorney stated that the recent recovery marks an increase of more than $800 million since January. Similarly, the lawyer also stated that the now-bankrupt exchange has been thinking about its future for the past few months, since you’ve been wondering what went wrong under the direction of Sam Bankman-Fried.
As a result of the revival news, FTX’s native token FTT suffered a massive rally. At the time of writing these lines, FTT is trading at approximately $2.44, after its value soared 76.91% in the last 24 hours. The total market capitalization of the token is currently $809 million. The FTT token has been trading between $1 and $2 since the exchange filed for bankruptcy.
Apart from this, the judge at the recent hearing denied the motion that would grant SBF reimbursement of its legal fees. The bankruptcy court proceedings also followed the debtors’ announcement that a Swiss court had granted a petition involving the sale of FTX’s European arm, FTX Europe AG, which was part of the exchange’s Chapter 11 bankruptcy filing, along with approximately 133 other affiliates.
FTX will reach an agreement with the interested parties
Considering that FTX is currently focused on a better future, the exchange is expected to start negotiations with interested parties soon to revive the exchange. Besides, a decision is expected to be made in the current quarter and the exchange is expected to reappear early next year.
Considering the current situation, it is clear that FTX would need a large amount of capital to get the exchange back up and running as the existing client interface had less of a connection to the movement of money. Currently, the fact that the exchange uses its own money to revive the exchange instead of using the same money for clients remains a matter shrouded in mystery. However, reviving the exchange would require large external funding or even the sale of its own assets.
FTX had terrible cybersecurity
It is a fact that FTX suffered a cyberattack approximately 24 hours before filing for bankruptcy, where the hacker fled with almost $432 million and a wad of digital money. The amount remains unaccounted for, as are the assets of its clients..
Furthermore, it was recently revealed that FTX did not have a dedicated cybersecurity staff, despite being responsible for protecting billions of dollars worth of crypto assets. The exchange never bothered to hire a Chief Information Security Officer, but instead asked software developers to take care of cybersecurity. At the same time, FTX left private cryptographic keys unencrypted and also did not use multi-factor authentication.