On Thursday, FTT pumped over 100% on the news that FTX might reopen.
Cryptocurrency markets saw a sharp rally on the news that cryptocurrency exchange FTX may make a partial comeback. FTX Token (FTT) pumped over 100% after the totally unexpected reports. FTT is the native token of the FTX ecosystem.
According to FTX attorney Andy Dittderich of law firm Sullivan & Cromwell, at a US Bankruptcy Court hearing on Wednesday, bankrupt cryptocurrency exchange FTX has recovered more than $7.3 billion in cash and crypto assets.
During the hearing, FTX’s legal team hinted at the possibility of reopening the exchange, according to Bloomberg. They told Judge John Dorsey that the reorganization plan is due in July and could be confirmed by the second quarter of next year. According to Dietderich, this move would require a large amount of capital or the use of real estate money.
FTX’s return is far from certain
One possible option was to convert shares of FTX creditors into stakes in the reopened stock exchange. However, the decision to restart the exchange was not final. “There are as many opinions on this, I think, as there are specialists involved in this issue,” Dietderich told Bloomberg. “That’s a lot.”
The exchange has managed to raise more than $800 million in assets since January. Dietrich said the company was trying to understand what went wrong under accused former founder Sam Bankman-Fried. The lawyer also claimed that the situation has stabilized.
The company’s new CEO, John Ray III, has highlighted improper money transfers and poor accounting on the collapsing cryptocurrency exchange, citing it as a “total failure” of controls.
FTX declared bankruptcy in November 2022 after traders withdrew $6 billion from the platform in just three days. A few days ago, rival exchange Binance abandoned the bailout deal. The former CEO of Bankman Fried is currently facing decades in prison.
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