FTX restart? What is the point of contention?

April 12, Sullivan & After Cromwell's lawyers told a court hearing that FTX was considering reopening its trading platform at some point in the future, FTT more than doubled from $1.32 to a high of $2.725, currently at $2.45, with 24-hour trading volume of $392,596,492.

The planned relaunch of the FTX trading platform has attracted a lot of attention. FTX has recovered $7.3 billion in assets, including $2 billion in cash, $4.3 billion in Class A cryptocurrencies, $300 million in securities and $600 million in investment receivables.

News of the reopening was not sudden, coming a day after FTX creditors cited disclosure documents on social media saying that FTX Japan had cancelled the auction for exactly the same reason - a planned reopening. "Japan provided updates on the next steps for the possible reopening of the trading platform, followed up actions and provided guidance on the work required to reopen the trading platform," according to the document.

Then the asset cross-chain Protocol Ren Protocol also published a community letter on its social platforms stating that FTX debtors had purchased shares and all of Ren Protocol's assets, authorizing and instructing Ren Protocol principals to, in the event of a potential shutdown of infrastructure and systems, Will transfer all cryptocurrency assets into FTX debtors' cold wallets for protection. These assets will be transferred to a separate cold wallet and segregated from other debtor assets.

同时，前 FTX 机构销售主管 Zane Tackett 表示，FTX 应该重新启动并提供代表债权人债权的 Token 交易，「这至少会为债权人提供一些价值——无论多么小，如果尝试失败，债权人的境况并不会更糟」。

The possibility that FTX restarts

Moving forward even further, plans for a relaunch have been in the works for some time since FTX's collapse. John J. Ray III, FTX's new chief executive, said in an interview with The Wall Street Journal in January that he was open to restarting the trading platform. He mentioned that a task force had been set up to explore how to restart FTX. While the trading platform has struggled with allegations of criminal misconduct by its management team, it still has clients who are so appreciative of FTX's technology that there is value in rebooting it.

Law firms representing FTX's official committee of unsecured creditors have also held discussions on the subject of "reopening the trading platform". Some creditors are quite positive about the resumption of trading platform business. Sunil Kavuri, a creditor, said: "If done properly, the underlying business can make money. So to me, it makes no economic sense to dismantle a profitable business, while restarting it will generate revenue and compensate users."

Back at Wednesday's court hearing, Sullivan & Cromwell's lawyer said FTX was considering relaunching its trading platform business at some point in the future. One possible option is for FTX's creditors to swap their debt for shares in the relaunched platform. The relaunch of the trading platform business is likely to be in the second quarter, around July.

此外，FTX 首席律师 Andy Dietderich 律师强调，如果采用重启的方案，该计划将需要筹集大量资金，并表示内部对重启资金应该来自 FTX 的资产还是第三方资本一事存有争议。且重启 FTX 的计划只是若干可能性的其中之一，任何决定都远非最终决定，FTX 有很多选择。

How are restart assets allocated

FTX has stabilized. It has recovered more than $7.3 billion in cash and liquid crypto assets, up from $1.9 billion in January. FTX is talking to interested parties and may consider using creditor funds to restart its crypto business in the second quarter.

However, restarting FTX is just a hypothetical at the moment, and many questions remain unanswered. First of all, the so-called "recovery" of assets is mainly due to the overall rise in the cryptocurrency market, so the $7.3 billion figure is still highly volatile and the financial position is unstable. Secondly, the restart of trading platform business is bound to require a huge amount of capital. Should these funds be raised directly from FTX's existing assets or through third-party capital financing? How should the assets, equity and income of the company be distributed among creditors after the restart? This is the biggest debate within FTX about the reboot.

The relaunch of the FTX trading platform is still under discussion, and its future direction is unclear. Many issues remain to be resolved, such as funding sources and the distribution of the company's assets, but the topic has attracted the attention of ordinary investors and users. The community expects FTX to get back on its feet, generate revenue in the short term to compensate, help better serve ordinary investors and users in the long term, and even change the crypto market landscape once again.

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