A number of crypto business commentators have expressed skepticism about FTX CEO John Ray’s imaginative and prescient to probably reboot the crypto change, citing belief points and “second-class” remedy of consumers as the explanation why customers could not “really feel secure to return.”
Former FTX CEO Sam Bankman-Fried tweeted on Jan. 20 praising John Ray for taking a look at a reboot of FTX, suggesting it’s the greatest transfer for its prospects.
I am glad Mr. Ray is lastly paying lip service to turning the change again on after months of squashing such efforts!
I am nonetheless ready for him to lastly admit FTX US is solvent and provides prospects their a refund…https://t.co/XjcyYFsoU0https://t.co/SdvMIMXQ5K
— SBF (@SBF_FTX) January 19, 2023
This got here after John Ray instructed The Wall Avenue Journal on Jan. 19 that he was considering reviving the crypto change to make the customers entire.
Ray famous that regardless of high executives being accused of criminal misconduct, stakeholders have proven curiosity within the prospects of the platform coming again — seeing the change as a “viable enterprise.”
In feedback to Cointelegraph, Binance Australia CEO, Leigh Travers, believes it is going to be tough for FTX to safe a license once more, significantly because the business strikes into a brand new year with increased regulation and oversight by regulators.
Travers additionally famous that because the closure, FTX customers have migrated “to different platforms, like Binance.” He questioned whether or not these customers will “really feel secure to return.”
He addressed the difficulty of FTX governance and controls, with directors sharing particulars about some shoppers getting “preferential remedy,” together with “again door switches.” Travers famous:
“How will customers really feel comfy going again to a platform that handled some shoppers as second-class?”
Digital property lawyer Liam Hennessy, a associate at Australian legislation agency Gadens, thinks that it could be “very tough” for FTX — given the reputational harm and lack of belief — to get prospects or traders to “come close to them once more.”
Hennessy was additionally skeptical whether or not FTX will ever get authorized for a license once more, saying that it’s “one massive query mark” which solely depends upon jurisdictions.
The lawyer believes that in some offshore jurisdictions, it is going to be simpler for the change to get license approval, however it is going to be pointless if its customers don’t intend to return.
“To leap via the hoops the key jurisdictions will set such because the US, UK and Australia shall be a severe problem.”
Associated: FTX has recovered over $5B in cash and liquid crypto: Report
In the meantime, RMIT College Blockchain Innovation Hub senior legislation lecturer, Aaron Lane, instructed Cointelegraph that it’s “not shocking” that FTX would take into account reviving the change enterprise, stating that’s the function of the Chapter 11 course of — giving the corporate the flexibility to suggest a plan to run the enterprise and pay the collectors again “over time with the courtroom’s approval.”
He believes that the “onus shall be on FTX,” or a creditor that recordsdata a competing plan, to indicate that collectors will get a “higher consequence” below the revival plan in comparison with liquidating FTX’s property.
Lane nevertheless additionally questioned whether or not prospects will ever belief FTX once more, saying it’s attainable that one other firm seeking to launch a brand new change “functions these property” fairly than growing its personal interface from scratch.