The value of FTX’s token increased by more than 35% on Thursday when it was reported that the bankrupt cryptocurrency exchange would be revived.
According to data, the FTX Token, which trades under the ticker FTT, started out at $1.83 and then shot up to a high of $2.51 just before noon.
The token increased in value when CEO John Ray III said in an interview that the company’s primary international exchange at FTX.com would be reopened.
Ray declared that everything was on the table and that they will take any practical action.
Following a liquidity issue in which the company’s then-CEO Sam Bankman-Fried confessed there weren’t enough assets to satisfy an influx of customer withdrawals, FTX declared bankruptcy in November. After declaring bankruptcy, FTX claimed that $415 million had been taken from the exchange in “unauthorized transactions” and that it had been hacked.
The exchange’s demise was caused by poor management and “an appalling breakdown of corporate controls at every level,” according to Ray, who was hired to oversee the company through its Chapter 11 bankruptcy procedures. Ray testified before Congress about this in his testimony. He claimed that by combining them with another Bankman-Fried company, Alameda research, FTX was gambling with the assets of its clients.
FTX is making efforts to recoup its assets and reimburse customers under his direction. There is a “significant gap” of $415 million that was reportedly taken by hackers, according to FTX, which met with debtors on Tuesday and claimed to have recovered almost $5.5 billion in liquid assets.
According to what he told the Journal, Ray has changed the organizational structure of FTX during the past two months, put in place the necessary corporate governance, and fired scores of staff members. Ray stated that forensic teams are searching through FTX’s data to identify more assets and mentioned that FTX had found new wallets just in the previous week.
Additionally, he stated that FTX.com may be revived to serve non-American clients if doing so would result in greater value being recovered for the firm’s clients than asset liquidation or platform sale.
The Southern District of New York and the Securities and Exchange Commission have now filed criminal charges against Bankman-Fried.
According to federal authorities, he spent millions of dollars of client cash to support a lavish lifestyle. According to reports, Bankman-Fried, who has claimed he did not steal customer monies, is being investigated by authorities with the cooperation of former Alameda CEO Caroline Ellison.
Charges against Bankman-Fried include conspiracy to commit wire fraud, conspiracy to commit fraud in the area of commodities, securities, and money laundering, as well as conspiracy to deceive the Federal Election Commission and violate campaign finance laws.
