SEC Chair Gensler Suggests Potential Revival of FTX Led by Former NYSE Chief, if Done ‘Within the Law’

A rejuvenated FTX stands a chance under new leadership, provided they approach it with a thorough comprehension of legal considerations, according to SEC Chair Gary Gensler in an interview with CNBC during DC Fintech Week.

Gensler’s remarks centred on speculations that Tom Farley, a former president of the New York Stock Exchange, is part of a select group of three contenders competing to acquire the remaining assets of the insolvent cryptocurrency exchange. Farley, who introduced his digital asset exchange named Bullish in May, is reportedly one of the last participants in the bankruptcy auction.

“If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law,’” SEC Chair Gary Gensler stated.

“Build the trust of investors in what you’re doing and ensure that you’re doing the proper disclosures — and also that you’re not commingling all these functions, trading against your customers or using their crypto assets for your own purposes.”

Farley currently serves as the Chief Executive Officer of the cryptocurrency exchange Bullish, established in 2021.

Additionally, as reported on November 8 by the Wall Street Journal, citing sources familiar with the situation, Fintech startup Figure Technologies and cryptocurrency venture capital firm Proof Group are the remaining two contenders in the bidding process for the acquisition of FTX.

The successful bidder may have the opportunity to relaunch the exchange following its scheduled emergence from bankruptcy next year, as outlined in the report by the Wall Street Journal.

Last week, Sam Bankman-Fried, the founder of FTX, was convicted on all seven criminal charges, which included allegations of fraud and money laundering. The charges asserted that FTX, which declared bankruptcy a year ago, was channelling customer funds to its affiliated hedge fund, Alameda Research.

$FTT is currently up 77% since last week.