Bangkrut Crypto Exchange, FTX, Find A Way Out Of Bankruptcy

FTX crypto exchange. (Photo; Doc. Cryptorank)

JAKARTA - FTX, a crypto exchange that was once one of the largest exchangers, is on the verge of collapse. After being declared bankrupt last year for being accused of fraud due to poor management, FTX is now looking for a way to bounce back. However, legal proceedings and other challenges are still blocking.

FTX is suspected of misusing customer funds for illegal things, such as high-risk businesses, political donations, and a luxurious lifestyle. This led to a liquidity crisis when customers withdrew their funds. FTX and its sister company, Alameda Research, were led by Sam Bankman-Fried, who was the main target of the allegations.

FTX filed bankruptcy protection in November last year. Since then, FTX administrators have managed to secure around 7 billion US dollars (approximately IDR 98 trillion) of assets, including 3.4 billion US dollars (IDR 54 trillion) in crypto. FTX has also reached tentative agreements with most creditors. The creditor payment plan will be filed in December.

Efforts to Save FTX

Meanwhile, FTX is exploring several options to save its exchange. According to a close source, FTX is considering offers from three potential investors who wish to acquire or partner with FTX.

The final decision will be taken in mid-December. The existing options include selling FTX assets, partnering with other investors, or re-launching independently.

However, the crypto community's reaction to FTX's recovery efforts was not so enthusiastic. Whale Chart, a Twitter account that follows major activities in the crypto world, shared this news with its more than 350.000 followers. However, many comments are pessimistic and cast doubt on FTX's prospects.

FTX still has many challenges to restore trust and its reputation. FTX should convince users that its stock exchange has turned into stronger and more reliable. FTX must also be committed to transparency and strict oversight. However, the shadow of previous bankruptcy may always haunt FTX's journey.