FTX says it may restart the collapsed crypto exchange
You really can’t make this stuff up! I am reading the communication by the FTX attorney about the next steps for the failed cryptocurrency exchange, and it’s one blunder after the other:
In an attempt to paint a rosy picture of the current “stable” situation, the company claims “the dumpster fire is out”. I guess they did not read the recently released report on the report on “Control Failures” that led to the collapse of the world’s 2nd largest crypto exchange. The report describes the disastrous inner workings between crypto exchange FTX and market maker Alameda Research that resulted in billions of losses for depositors.
The company thinks it benefited from the recent rise in prices of crypto assets. Perhaps no one told the leadership that the exchange is bankrupt, and the only parties that are hypothetically benefiting from the current situation, are the depositors whose funds are locked.
The attorney of FTX remarked that the exchange would need a significant amount of capital to restart since in the background FTX & Alameda were (ab)using clients’ deposits for dubious purposes.
The company concludes that "the app worked beautifully, but in truth, it was a facade”.
The FTX Debtor group conducting a thorough analysis of the crypto exchange declined to comment, perhaps because they have more sanity and understanding about the reality of a company that went down in flames just a few months ago.