FTX Revival in Jeopardy as Users Struggle to Trust the Platform

potential reboot of FTX cryptocurrency exchange.

Several crypto industry commentators have expressed skepticism about the potential reboot of FTX, a cryptocurrency exchange, due to trust issues and “second-class” treatment of customers.

FTX filed for bankruptcy in November after falling into a liquidity crunch and facing accusations of criminal misconduct by its founders and former executives.

FTX CEO John Ray has expressed interest in potentially reviving the exchange to make users whole, but critics believe that users may not return to the platform due to trust issues and increased regulation in the industry.

I'm glad Mr. Ray is finally paying lip service to turning the exchange back on after months of squashing such efforts!

I'm still waiting for him to finally admit FTX US is solvent and give customers their money back…https://t.co/XjcyYFsoU0 https://t.co/SdvMIMXQ5K
— SBF (@SBF_FTX) January 19, 2023

Binance Australia CEO Leigh Travers and Digital assets lawyer Liam Hennessy both questioned whether FTX will be able to secure a license again and whether users will feel comfortable returning to the platform.

RMIT University Blockchain Innovation Hub senior law lecturer Aaron Lane said that FTX will have to show that creditors will get a better result under the revival plan compared to liquidating FTX’s assets.