FTX Reboot Might Fail due to Trust Issues

A FTX reboot suggested by current CEO John Ray might fail, as pointed out by several members of the crypto space, due to the loss of trust.

Many critics are reported to question the matter related to the crypto exchange FTX, whose active CEO John Ray’s plans were revealed to possibly restart the platform. 

The report cites trust issues and the treatment of consumers as “second-class” as reasons why users might not “feel safe to go back.”

On January 20, former FTX CEO Sam Bankman-Fried made his presence known by posting a tweet expressing his appreciation to John Ray for considering a relaunch of the company, saying it would be best for its clients.

Leigh Travers, CEO of Binance Australia, said that according to him, it will be challenging for FTX to obtain a license once more, especially as the sector enters a new year with more regulation and scrutiny from authorities. 

Travers said that customers of FTX have switched “to other platforms, like Binance” since the collapse. He wondered if those users would “feel safe to go back.”

Industry Loses Faith in FTX

Given the harm to its reputation and lack of confidence, digital assets attorney Liam Hennessy, a partner at the Australian law firm Gadens, also believes that it would be “very difficult” for FTX to attract new clients or investors. 

Hennessy expressed doubt that FTX would ever receive license approval once more, calling it “one big question mark.” Nonetheless, the attorney thinks it will be easy for the exchange to get approval in some overseas countries.

Aaron Lane, a senior law lecturer, said that seeing the goal of the Chapter 11 process, it is “not surprising” that FTX would go for starting the business.

Notably, on January 19, it was reported that John Ray is considering reviving the cryptocurrency exchange in order to compensate the users. Even though the former CEO, Sam Bankman-Fried and other employees were accused of engaging in illegal behavior, Ray claimed that customers have appreciated FTX’s technology, and he thinks it deserves to be revived.