FTX Planning To Relaunch Its International Cryptocurrency Exchange
FTX, which went bankrupt in 2022, is now potentially in talks to relaunch its international cryptocurrency exchange. According to reports, the company has started the process of rebooting the original FTX exchange and is now soliciting interested parties.
With the help of investors, the crypto exchange company wants to restart the crypto exchange via a joint venture. When the FTX lawyers were approached for comments, they were not immediately available.
A few months ago, FTX applied for bankruptcy protection in the USA after its collapse. At that time, the collapse of the FTX made the entire digital assets industry turn bearish as it was a prominent crypto firm.
The time period between the news of the failure and applying for bankruptcy forced most of the customers to withdraw billions of dollars from the exchange. This led to a serious liquidity problem at the FTX exchange which ultimately led to the company's demise.
The FTX company also tried to get a rescue deal from Binance, which also fell through and ultimately led to the closure of the FTX.
Ever since the shutdown of FTX, global regulators have increased the scrutiny of the crypto sector. At the same time, Bankman-Fried (founder of FTX) is facing lawsuits of criminal nature by the US government. Mr Bankman-Fried is accused of alleged fraud by the US government on his involvement and the events leading up to the FTX's shutdown.
Now, the real question is if the public will trust the FTX exchange again after its revival. After all, the reputation of Bankman-Fried and the FTX is nowhere near as good as it used to be in the past. That's also a factor that could decide whether the investors agree to relaunch the FTX exchange or not!
In addition, the increased scrutiny by the US and the other country's regulators may also make it difficult for the FTX to resurface again.