FTX’s revival plan draws scrutiny from crypto community

The crypto community expressed skepticism over plans to revive FTX — with some questioning the apparent discovery of $7.3 billion in missing funds.

On April 12, during a bankruptcy hearing, it was revealed that the discovery of missing funds could pave the way for the exchange to relaunch.

The FTT token spiked 103% on the news. Some 12 hours later, the token has retained most of its gains, giving up approximately $0.40 on the $2.72 peak.

The FTX scandal

In November 2022, rumors that FTX was insolvent were proven true — leading to the collapse of FTT, and user accounts being frozen.

The weeks that followed uncovered a scandal that has gone down in history as among the worst to have affected the crypto industry.

The mismanagement of users’ funds was at the heart of the matter — particularly concerning intercompany transactions. It emerged that the exchange had lent $10 billion of users’ funds to sister company Alameda Research — who subsequently squandered the money through risky leveraged trades.

The scandal featured numerous subplots, including Sam Bankman-Fried’s mainstream media support, the exchange’s favorable regulatory relationship, and a mysterious hack alleged to be the work of an insider, to name a few.

Crypto community skepticism

Cryptocurrency community members took to Twitter to share their opinions on the potential relaunch of FTX.

Some took a humorous approach, including The Bitcoin Mindset, who posted a meme of Samuel L. Jackson in Coming to America, saying, “WHAT?!”

Similarly, Nebraskangooner replied with a sarcastic meme showing people smiling, giving thumbs up, and the OK sign. He asked why anyone would use FTX again.

“Hey sorry we stole all your funds but don’t worry they’ll be safe this time around!“

Others put forward theories on the revival. Nazeem Elkommos questioned how $7.3 billion was recovered. Elkommos speculated that the money came from vested interests intent on keeping the exchange going.

“Someone from Wall Street is balling #FTX out behind closed doors to continue their Ponzi scheme.“

Max Keiser doubts whether the discovered funds exist. The Bitcoin advocate proposed that the entire thing is a ruse by the political class to pump the token, exit, and minimize their losses.

“FACT: Lots of American politicians have trapped FTT tokens and hope by hyping this lie they can exit some FTT tokens and recoup some of their losses. “