FTX wants to revive international crypto exchange

The bankrupt crypto company FTX is currently in talks to revive its flagship international cryptocurrency exchange, just one day after a US federal judge denies founder and former CEO Sam Bankman-Fried’s bid to have the criminal fraud case against him thrown out.

FTX Trading Ltd.'s CEO, John Ray, said the company "has begun the process of soliciting interested parties to the reboot of the FTX.com exchange," according to a Wall Street Journal report.

The failed crypto exchange and hedge fund operators have been in discussions with investors hoping to gain backing for a joint reboot venture, said sources familiar with the talks.

FTX filed for US Chapter 11 bankruptcy protections following the exchange’s collapse over the course of 10 days in November 2022.

The massive collapse of FTX – once considered the most regulated exchange in the world – had the entire crypto market reeling from the sharp focus of governments, regulators, and digital consumers alike.

Meantime, a US federal judge in Manhattan court Tuesday rejected FTX founder Sam Bankman-Fried's request to throw out most of the criminal charges accusing him of orchestrating a multi-billion dollar fraud scheme leading to the firm's collapse.

The decision is expected to pave the way for a trial to be held at the beginning of October.

In the days leading up to its crash, 31-year-old Bankman-Fried is said to have withdrawn billions of dollars from FTX coffers while also trying to raise emergency funds to keep the exchange afloat.

FTX founder Sam Bankman-Fried
Indicted FTX founder Sam Bankman-Fried exits a US federal court in New York City on June 15, 2023. Image by Mike Segar | Reuters

The vacuum in the firm's liquidity, as well as a failed rescue deal with its rival Binance exchange, led to the company's high-profile collapse.

Bankman-Fried was arrested in December in the Bahamas, where FTX is headquartered, and extradited to the US to face criminal charges for alleged fraud.

Prosecutors say the former CEO stole billions of dollars in FTX customer funds to prop up a separate trading hedge fund he owned, as well as misleading investors and lenders.

He is also accused of illegally donating to US political campaigns in the names of colleagues.

Bankman-Fred has denied stealing funds but acknowledged his company lacked adequate risk management in his not-guilty plea.

FTX debtors declined to comment on the report.