FTX is reportedly in talks to revive its once-leading international cryptocurrency exchange which dramatically collapsed last year. Disgraced founder, Sam Bankman-Fried, is facing a total of 13 charges, including money and wire fraud. If convicted on all counts, he could face life in prison.
According to the Wall Street Journal, newly appointed FTX CEO, John Ray, said the bankrupt company has begun “the process of soliciting interested parties to the reboot of the FTX.com exchange”.
FTX, which was formerly the second-largest crypto exchange in the world, filed for bankruptcy in November – causing a shockwave of decline through the rest of the industry.
The company collapsed following a liquidity crisis – as customers demanded withdrawals of up to $6bn over fear their assets were no longer safe.
Bankman-Fried reportedly reached out to venture capitalists to save the company, before turning to rival exchange Binance to close a deal.
Binance announced it was going to buy out the fledgling exchange, but the company backed out just a day later citing concerns the company had been mishandling customer funds.
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The news of an attempt to revive FTX’s crypto exchange comes as its founder, Sam Bankman-Fried, faces criminal charges for allegedly stealing billions of dollars of customers’ assests.
Bankman-Fried, who has pleaded not guilty to all the charges, is also being accused of misleading investors and lenders.
On Tuesday (June 27), a federal judge rejected Bankman-Fried’s request to dismiss all charges being put on him by the US government.
US. District Judge Lewis Kaplan denied the former billionaire’s bid – meaning the 31-year-old is set for a criminal trial in October.