Bankrupt Crypto Exchange FTX Should Consider Relaunch, Says Former Sales Chief

The former head of institutional sales at FTX, Zane Tackett, has suggested that the now-defunct cryptocurrency exchange should relaunch and offer a token that represents creditor claims.

Tackett suggested that this would give creditors some value, no matter how small, and a way to price the assets held by FTX.

He proposed that the new exchange should offer a market for FTX claims based on one token per $1 lost, similar to how rival crypto exchange Bitfinex issued a token called BFX after it was hacked in 2016.

Tackett argued that relaunching FTX would allow creditors to convert their debt to equity and get exposure to the investments that the exchange had, which would be a massive benefit.

He also noted that relaunching the exchange would provide immediate liquidity to those who want to sell off their claim and offer an opportunity for a bigger payoff to those with the assets and the desire.

However, Tackett acknowledged that there are several barriers to the plan, including using some of the funds recovered for creditors to finance the reboot.

He also said that success would depend on the way the exchange is relaunched and whether it is run like a crypto company and able to be nimble.

FTX filed for bankruptcy in November and its creditors have been trying to recover their funds. Even John Ray III, who was appointed to lead FTX following the bankruptcy filing, suggested in January that the exchange should be relaunched.

FTX’s creditors have also held several “reboot of exchange” meetings, and the company has examined the benefits and tax implications of restarting the exchange.