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FTX’s Potential Comeback: A Crypto Miracle or Pipe Dream?

In what could be the most significant turnaround in crypto history, bankrupt cryptocurrency exchange FTX has revealed that it has recovered over $7.3 billion in cash and liquid crypto assets, including $800 million since January. The company’s attorney, Andy Dietderich, suggested that FTX could reopen at some point in the future.

To achieve this, FTX would need to secure substantial capital. Internal debates have arisen over whether the funds should come from the company’s own assets or outside investors. Dietderich hinted at the possibility of customers opting to take part of their proceeds in cash from the estate and receiving an interest in the exchange going forward.

Although the decision to restart the company is not final, the announcement has sparked skepticism. Uncertainty remains about what a reboot would mean for customers whose deposits have been locked during bankruptcy proceedings. So far, only FTX customers in Japan have been able to withdraw funds since the company’s collapse.

As Sam Bankman-Fried and his legal team gear up for the October trial on fraud charges, details surrounding the collapse of the $32 billion FTX empire are emerging through bankruptcy proceedings. The first debtor report paints a picture of a billion-dollar house of cards, lacking identifiable records, data sources, and processes typically present in a bankruptcy case involving a business of FTX’s size and complexity.

While a potential FTX comeback could make crypto history, the uncertainty and skepticism surrounding the situation leave many wondering whether it’s a genuine possibility or merely a pipe dream.