FTX, the former cryptocurrency exchange company, has opted to discontinue its attempts to revive its crypto exchange. Instead, the firm will liquidate its existing assets in a bid to refund customers.

According to Yahoo Finance, FTX has been engaged in negotiations with potential investors and bidders for months, hoping to attract investment back into the company. However, these discussions collapsed when no investor was willing to inject sufficient funds into the company for the reconstruction of its crypto exchange platform. This left FTX with no option but to liquidate its current assets. In November 2022, due to inappropriate allocation of consumer funds, the company was compelled to file for bankruptcy. Since then, it has managed to amass over $7 billion in assets which will be utilized for reimbursing former customers. Once customers have been compensated, the government will seek to recover over $9 billion in claims against the company.

Reuters reported that Sam Bankman-Fried, the former CEO of FTX, was found guilty on seven counts of fraud in November 2023. Bankman-Fried had misappropriated over $8 billion from consumers using the platform for his personal expenses, marking one of history's largest financial fraud cases. The misappropriated funds were used not only to finance a crypto hedge fund but also contributed over $100 million towards U.S. political funds. This was done with an intention to advocate cryptocurrency legislation that would benefit his business.

Andy Dietderich, an attorney representing FTX, told Yahoo Finance: "FTX was an irresponsible sham created by a convicted felon. The costs and risks of creating a viable exchange from what Mr. Bankman-Fried left in a dumpster were simply too high." Dietderich further commented that the technology and administration purportedly established by Bankman-Fried were inadequate for supporting such a business.