The defunct crypto exchange FTX is in the process of a potential reboot, aiming to restart its services for international customers. The Wall Street Journal first reported the potential restart in June 2023. John Ray, the CEO of FTX, revealed that the firm had begun the process of interviewing interested parties for the reboot of FTX.com.
As part of the plan, bankruptcy administrators have proposed a structure that categorizes claimants into distinct groups. These include ‘dotcom customers’ who used the FTX.com offshore exchange, U.S. exchange customers, customers of its NFT exchange, and holders of general unsecured claims, secured claims, and subordinated claims. The latter includes Alameda’s lenders or trading partners and those who owe taxes and fines.
The plan outlines a ‘waterfall priorities’ system to determine the order of claims, with each category receiving a pro-rata payout from the remaining pool after the preceding class is compensated. Notably, the ‘dotcom customers’ have the option to pool their assets to establish an ‘offshore exchange company’ or a rebooted platform outside the U.S., marking a significant milestone in the FTX saga.
However, this move is likely to raise eyebrows among lawmakers and the crypto community due to the exchange’s tarnished reputation and the ongoing complex process of compensating creditors. The FTT token saw a significant gain following the news, increasing by about 10% to $1.47. It peaked at $1.59 shortly after the announcement but continues to show momentum.
In the midst of these developments, the crypto world was rocked by the launch of the BALD meme coin, a humorous reference to Coinbase CEO Brian Armstrong. The token saw an incredible 289,000% gain within the first 24 hours of trading. However, after the token’s anonymous developer removed thousands of ETH in liquidity, the price of BALD plummeted more than 85%, sparking allegations of a rug pull, which the developer has denied.
Interestingly, a conspiracy theory has emerged suggesting that FTX founder Sam Bankman-Fried may be secretly behind the BALD meme coin. The theory is based on the fact that the Ethereum wallet address responsible for deploying the Bald token had received thousands of ETH in funding from wallets associated with FTX and Alameda Research. However, it must be noted that Bankman-Fried is awaiting his October trial under house arrest at his parent’s home in California.
