FTX caretakers ditch plans to resurrect collapsed exchange

THE custodians of disgraced cryptocurrency exchange FTX have decided to scrap plans to bring it back to life as an exchange.

Instead, the company, which collapsed in spectacular fashion in 2022, will opt for total liquidation in an attempt to ensure its customers can be repaid their losses in full.

It is understood that several negotiations had been taking place for months in a bid to find investors prepared to plough funds into a project to fire up FTX as an exchange again.

With no partner willing to commit to the amounts required, Andy Dietderich - the attorney for FTX - said it was now time to focus on liquidating FTX's assets. More than $7 billion in assets have been recovered so far. It is estimated a further two billion dollars will be required to repay customers who lost investments.

"FTX was an irresponsible sham created by a convicted felon," he explained.

"The costs and risks of creating a viable exchange from what Mr Bankman-Fried left in a dumpster were simply too high."

Dietderich added the inability to attract potential investors in plans to resurrect FTX were a clear demonstration that Bankman-Fried had always lacked the infrastructure to run the company as a viable concern.

In November, the FTX founder was found guilty of stealing from customers when a Manhattan jury convicted the 31-year-old over all seven of the charges he faced. He is due to be sentenced on March 28.

He was jailed in August, where he remains after having his bail revoked. A second trial has been set for March where further charges including bribery and bank fraud.

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