The Crypto Reboot That Wasn’t: Why ‘FTX 2.0’ Floundered – WSJ

To outside observers, it might seem far-fetched that FTX could be revived after it collapsed with an $8 billion hole in its balance sheet and its top executives were charged with fraud. But the idea of rebooting the exchange in some form—dubbed FTX 2.0—won support among major creditors. Dozens of prospective buyers expressed interest.

As crypto prices rallied late last year, however, the billions of dollars of crypto still under FTX’s control jumped in value, and it became feasible for the company to repay its customers more or less in full. By returning 100 cents on the dollar, the management team steering FTX through bankruptcy could declare its job done, with no need to restart the exchange.

Some creditors say the bankruptcy estate missed an opportunity to create a valuable business from the ashes of FTX, formerly one of the world’s most popular crypto exchanges.

Source: The Crypto Reboot That Wasn’t: Why ‘FTX 2.0’ Floundered – WSJ