"A hopeless deception." FTX owners have abandoned plans to rebuild the exchange
FTX lawyers reported that they could not find a buyer or investor for the collapsed exchange and will fully focus on compensating clients affected by its bankruptcy.
FTX's current management, which has been dealing with its bankruptcy and recovery of surviving assets for more than a year, has been negotiating with potential buyers and investors for several months, FTX lawyer Andy Ditderich said at a hearing in the bankruptcy court of the exchange in Delaware. But none of them were willing to invest enough funds to rebuild the exchange.
The former head of the exchange and a group of affiliated companies and funds, Sam Bankman-Fried, was convicted on charges of fraud related to FTX activities. "FTX was a hopeless deception, behind which stood a convicted criminal," said Dietderich. "The costs and risks of creating a viable exchange out of the junk that Mr. Bankman—Fried left us were simply too high."
FTX management will now focus on liquidating existing assets in order to return money to customers whose cryptocurrency deposits were blocked when the company filed for bankruptcy.
According to Dietderich, FTX recovered assets worth more than $7 billion to return money to customers and reached an agreement with various government regulators who agreed to wait until customers receive full compensation before trying to recover about $9 billion in claims.
Source: RBC
