Andrew Dietderich, FTX’s lawyer, has finally come clean about where the company is headed. Andrew Dietderich has said that while plans to repay former customers are in the pipeline, the company is less likely to restart its operations. He has said that the management anticipates sufficient funds to fully pay customers and creditors.
This statement brings the speculation to a full point, especially for those who bought into the idea of FTX’s comeback. It was in June when the Chief Executive Officer, John Ray III, said that the company had begun the process of rebooting the exchange platform. It was believed that FTX would be rebranded as a part of the restart.
Simply put, the plans to restart FTX have been abandoned while the company is committed to paying its customers and creditors back all the money it owes.
Plans to reboot the platform have been dropped, citing less interest from investors in reviving the company. Andrew Dietderich said that it is disappointing to know that the company has valuable customer data and information to monetize, but no investor is ready to commit the kind of capital that is needed to restart the platform. The lawyer called this a watershed moment, adding that all the necessary disclosures will be filed in February. It will include details about claims and payments.
Not many customers are excited about the development, though. This comes to light as settlements are being done effectively from the date when petitions were filed. Customers and creditors believe that that is not the actual value of their payment, considering the time when they started.
Many claims have actually fallen dramatically in value. The FTX crisis started when the company filed for bankruptcy in late 2022. The court case against Sam Bankman-Fried served as fuel for it. He was the CEO of the company at that point, and a court had found him guilty of defrauding lenders, customers, and investors in the company.
The arrest of Sam Bankman-Fried triggered a ripple effect in the crypto sphere. It started with BTC losing its momentum and then spread across other tokens, including, but not limited to, ETH and SOL. SBF was once termed a genius; many assumed that he would change the course of the cryptosphere with the giant platform. Both ended up falling to the ground, especially SBF, after he was found guilty of all the charges mentioned.
FTX’s recent development comes days after the court ruled that an independent examiner must investigate the company. It is now up to the US Bankruptcy Court to appoint an independent examiner who will be tasked with studying FTX. The ruling has come from the Third Circuit Court of Appeals in Philadelphia, and it dates back to this Friday.
The step was taken only after an investigation by CEO John Ray III was found insufficient.