• 23 July, 2024
Crypto Exchanges News

John Ray’s Plan to Relaunch FTX Faces Skepticism From Industry Experts

Industry experts have expressed doubt about FTX CEO John Ray’s plan to potentially relaunch the crypto exchange, citing concerns about trust and past issues with customer treatment as reasons why users may not be willing to return.

As he works to refund money to the failed company’s customers and creditors, FTX’s new CEO, John J. Ray III, said he is looking into the possibility of reviving the bankrupt crypto exchange.

In his first interview since becoming the head of FTX, Mr Ray stated that a task force has been established to investigate the possibility of restarting FTX.com, the company’s main international exchange. Despite accusations of criminal misconduct against FTX executives, some customers have expressed support for the company’s technology and the potential value of relaunching the platform. 

Following that, Former FTX CEO Sam Bankman-Fried tweeted on Jan. 20 praising John Ray for looking at a reboot of FTX, suggesting it is the best move for its customers.

“I’m glad Mr. Ray is finally paying lip service to turning the exchange back on after months of squashing such efforts!” SBF said while also hoping Ray will “finally admit FTX US is solvent and give customers their money back.”

However, Binance Australia CEO, Leigh Travers, believes it will be difficult for FTX to secure a license again, particularly as the industry moves into a new year with increased regulation and oversight by regulators.

Liam Hennessy, a partner at Australian law firm Gadens and a digital assets lawyer, believes that it will be challenging for FTX to regain customers or attract new investors due to the significant reputational damage and loss of trust. He also expresses doubt about FTX’s ability to obtain a license in the future, as it depends on the specific jurisdiction. 

To jump through the hoops the major jurisdictions will set such as the US, UK and Australia will be a serious challenge. he said.

According to Aaron Lane, a senior law lecturer at RMIT University Blockchain Innovation Hub, it is not surprising that FTX is considering reviving its exchange business through the Chapter 11 process. Lane believes that the company or creditors will have to show that creditors will get a better result under the revival plan compared to liquidating FTX’s assets. 

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