FTX Revival Possibilities Explored by SEC Chair Gary Gensler
FTX, under new leadership, could see a potential turnaround, but only if approached with a comprehensive understanding of legal implications, suggested SEC Chair Gary Gensler in an interview with CNBC during DC Fintech Week.
Gensler’s comments revolved around speculation that Tom Farley, a former president of the New York Stock Exchange, is among three contenders vying to acquire the remaining assets of the defunct cryptocurrency exchange. Farley, who launched his digital asset exchange, Bullish, in May, is reportedly one of the final participants in the bankruptcy auction.
“If Tom or anyone else wishes to enter this field, I would advise, ‘Do so within the confines of the law,’” remarked SEC Chair Gary Gensler.
“Establish investor trust in your operations by ensuring proper disclosures — and avoid mingling various functions, trading against your clientele, or misusing their crypto assets for personal gains.”
Farley currently serves as the Chief Executive Officer of the cryptocurrency exchange Bullish, founded in 2021.
Furthermore, according to sources familiar with the matter as reported by the Wall Street Journal on November 8, Fintech startup Figure Technologies and cryptocurrency venture capital firm Proof Group are the other two contenders involved in the bidding process to acquire FTX.
The winning bidder might have the chance to revive the exchange after it emerges from bankruptcy, as outlined in the Wall Street Journal report, expected to happen next year.
Last week, Sam Bankman-Fried, the founder of FTX, was found guilty on all seven criminal charges, including allegations of fraud and money laundering. The charges accused FTX, which declared bankruptcy a year ago, of diverting customer funds to its affiliated hedge fund, Alameda Research.
$FTT has surged by 77% since last week.
