Kraken's Jesse Powell Says FTX 2.0 'Worse Than Starting From Scratch'
Portfolio Pulse from Murtuza Merchant
Kraken's co-founder, Jesse Powell, has expressed skepticism about the proposed restructuring plan for FTX (CRYPTO: FTT). The plan, announced by FTX, aims to revive the exchange as an offshore entity. Powell believes that FTX 2.0 would be worse than starting from scratch due to lack of team, tech, licenses, banking, and a tarnished brand. The restructuring plan involves the identification of three main recovery pools, cancellation of intercompany claims, and the liquidation of FTX's estates to make cash distributions to customers and creditors.

August 04, 2023 | 12:04 pm
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FTX's proposed restructuring plan, which includes the liquidation of estates and cancellation of intercompany claims, has been met with skepticism by Kraken's co-founder. This could potentially impact the value of FTT.
The restructuring plan of FTX, if implemented, could lead to a decrease in the value of FTT due to the liquidation of estates and cancellation of intercompany claims. Furthermore, the skepticism expressed by a prominent figure in the crypto industry, Jesse Powell, could further dampen investor confidence in FTT.
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