Failed cryptocurrency exchange FTX had representatives at a recent court hearing in Delaware. The court hearing was an avenue for FTX to announce its plans for business and affected customers.
According to an attorney representing the company, the crypto exchange is focused on refunding users and has put a stop to starting business again.
Based on a report from Reuters, FTX has started liquidating all assets in a bid to generate funds for the reimbursement.
Meanwhile, the bankrupt crypto exchange is yet to get enough funding to start business, although negotiations with potential investors are ongoing.
Represented by FTX attorney Andy Dietderich at the bankruptcy court hearing in Delaware, the purpose of repaying affected customers was not a guarantee but an "ambitious goal."
Andy revealed that the process involves risks and a lot of work, but he is confident in the approach used by the company.
"I would like the court and stakeholders to understand this not as a guarantee, but as an objective. There is still a great amount of work, and risk, between us and that result. But we believe the objective is within reach and we have a strategy to achieve it,"
he stated.
While speaking at the bankruptcy court hearing, Andy Dietderich revealed that the exchange has failed to get funding from investors due to some significant underlying flaws.
He added that the crypto exchange founder Sam Bankman-Fried allegedly exposed the important details that sustain the company as a trusted business. Also, recall that SBF has been involved in fraudulent charges related to his partnership with the crypto exchange.
Dietderich emphasized that the establishment of FTX was an imprudent charade spearheaded by a convicted felon. He argued that the expenses and hazards associated with reviving the remnants left by Bankman-Fried into a viable exchange were excessively steep.
Consequently, FTX has decided to shift its attention towards liquidating its assets to reimburse customers whose cryptocurrency deposits were inaccessible when the company declared bankruptcy in November 2022.
FTX attorney Andy Dietrich has told the court that the crypto exchange has generated more than $7 billion in assets as it aims to refund users.
In addition, various government and financial regulators have agreed to postpone their agitations until customers are paid. Some FTX customers are not satisfied with the reimbursement strategy, Reuters reports.
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