Firm News

Kleinberg Kaplan’s Matthew Gold quoted in Blockworks on the viability of an FTX reboot

Firm News | May 25, 2023 | Creditors’ Rights and Bankruptcy Litigation | Digital Assets and Cryptocurrency

Kleinberg Kaplan partner Matthew Gold was recently quoted in an article in Blockworks titled, “What an FTX Reboot Could Look Like — And Is It Even Viable?” The article covers how realistic it is for FTX to reboot after the company’s new CEO, John J. Ray III, said he was looking into restarting the exchange.

Matt addresses the issues that FTX could potentially face given the damaged brand name and many open questions regarding the technology, risk engine, and software supporting the operation of the exchange. In addition, Matt shares, “A self-financing plan might be a difficult sell to creditors, because it would mean that funds that in a liquidation scenario would be dedicated to paying back creditors would instead be reinvested in the rebooted company.” He further adds, “In this scenario creditors would have to bear the risk of the success of the rebooted venture.”

To read the full article in Blockworks, please click here.