FTX Relaunch: Former Customers Could Get Stake, Exchange Restarting in Q2

• FTX attorneys revealed a roadmap update for the exchange, including plans to relaunch the exchange and possibly provide former customers with some form of stake.
• The plan requires raising significant amounts of capital, potentially from third parties or the estate.
• A customer bar date is expected to be set by September 2023, after which point customers‘ claims will be frozen.

FTX Reveals Q2 Relaunch Plans

FTX attorneys revealed a roadmap update that includes plans to relaunch the exchange and potentially provide former customers with some form of stake. The plan requires raising significant amounts of capital, potentially from third parties or the estate. A customer bar date is expected to be set by September 2023, after which point customers‘ claims will be frozen.

FTX Plans Exchange Relaunch

The new management of FTX may soon relaunch the exchange, and may even provide users that initially lost money with a stake. While discussing the updated 2023-2024 roadmap, attorney Dietderich revealed that FTX is actively considering a relaunch, stating that the firm will assess the possibility of restarting the exchange as early as Q2 2023. At this time, FTX will decide whether relaunching would be in its users’ best interest.

Judge Dorsey Questions Withdrawal Possibilities

Delaware Judge John Dorsey had questions about how the proposed restart would work – particularly whether FTX users would be able to withdraw their funds. Dietderich replied that they do not yet know but added that it will require raising significant amounts of capital either from third parties or from within the estate itself.

Options Being Considered for Former Customers

In order to give former customers some sort of interest in FTX’s future success, one idea being considered is giving them options in the company – financial instruments which grant holders rights to buy an asset at a certain price. This could incentivize them to maintain long-term investment in FTX’s success following its eventual relaunch.

Customer Bar Date Set for September

                                                                                                                                                                                                                                                                                                                                                                             Once such plans have been assessed in Q2 2023, a customer bar date is expected to be set by September 2023 – after which point customers‘ claims against FTX will be frozen and no more claims can be submitted into court proceedings..