FTX is considering the possibility of using customer repayment funds to revive its failed cryptocurrency exchange as the project would require a substantial amount of capital, according to an attorney for the company.
Andrew G. Dietderich, an FTX lawyer from Sullivan & Cromwell, told US Bankruptcy Judge John T. Dorsey that the company is still in the early stages of deciding whether to relaunch the exchange.
In court, Dietderich stated that the original FTX trading app was more like a video game than a professional, properly functioning exchange. He also suggested that funds required for the exchange’s restart could come from third-party investments or from the $7.3 billion worth of cash, crypto, and other assets that FTX has collected so far.
Dietderich added that the funds are being held until FTX gains final court approval for a creditor payout plan, which is unlikely to occur until next year.
The case is currently ongoing at the US Bankruptcy Court for the District of Delaware and is known as FTX Trading Ltd., 22-11068.