FTT Hikes 95% After FTX Hints At Restarting Exchange Using Creditor Funds
- An attorney for FTX has revealed that the exchange could be restarted using creditor funds.
- The exchange’s lawyers also reported that roughly $7.3 billion in liquid assets had been recovered.
- The exchange’s native token FTT skyrocketed 95% following the attorney’s statement in court.
FTX’s latest hearing in the United States Bankruptcy Court for the District of Delaware provided an update on the recovery attempts being made by the bankrupt crypto exchange’s new management. Several key developments were revealed during the hearing, including the possibility of restarting the Bahamas-based exchange that collapsed in November last year.
FTX has recovered nearly $7.3 billion in liquid assets
Attorneys from Sullivan & Cromwell, the law firm representing FTX, revealed in the bankruptcy court earlier today that the crypto firm had managed to recover a whopping $7.3 billion worth of cash, crypto, and other liquid assets so far. Sullivan & Cromwell’s Andrew G. Dietderich told bankruptcy judge John T. Dorsey that the exchange’s new management was also considering restarting the defunct crypto exchange.
When asked about the funding to cover the cost of rebooting the crypto exchange, FTX’s lawyer stated that some of the funds belonging to creditors may be used for this purpose. Other funding sources could include fundraising from third-party investors looking to back such a project. The lawyer suggested that customers could have the option to take part of the proceeds that they would otherwise receive in cash from the estate and receive some kind of interest in the exchange going forward. If approved, the exchange would be rebooted in the second quarter of 2024.
News of the recovery of funds and a possible reboot of FTX sent the exchange’s native token FTT soaring. The token rose a whopping 95% following the attorneys’ statements in the bankruptcy court, reaching as high as $2.72. However, the rally was short-lived as FTT soon fell back down to the price it was trading at before the hearing. A the time of writing, the token was trading at $2.38, up more than 77% over the past 24 hours.
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