Key highlights
- FTX Token (FTT) saw a surge of over 112% from $1.32 to $2.80 after the company’s attorneys announced the possibility of the exchange restarting in the future.
- FTX has recovered almost $7.3 billion in liquid assets and the legal team representing the debtors claims that the exchange may reopen in the second quarter of 2024.
- FTX’s bankruptcy judge rejected a motion to prioritize former CEO Sam Bankman-Fried’s legal fees, and the hearings are ongoing following the approval of the sale of FTX Europe AG by a Swiss court.
The price of FTX Token FTT surged by more than 112% from $1.32 to $2.80 about the same time that attorneys announced the prospective restart of the exchange.
Since the company filed for bankruptcy last year, the token price had mainly remained between $1 and $2. The legal team representing the debtors claims that cryptocurrency exchange FTX may think about starting up again in the future.
The FTX native token is a deflationary crypto asset. With the use of the “buy and burn” feature of the tokens, more than 20 million FTT tokens have been permanently taken out of circulation.
What you should know
FTX’s attorneys at Sullivan & Cromwell testified in a hearing on April 12 in the United States Bankruptcy Court for the District of Delaware that the cryptocurrency company had recovered almost $7.3 billion in liquid assets. According to a March statement by the debtors, as of November 2022, the four FTX firm silos have scheduled assets worth around $4.8 billion.
The four FTX firm silos, according to a March filing from the debtors, had about $4.8 billion in scheduled assets as of November 2022, and an inquiry into the assets is still ongoing.
The legal team claims that FTX will also think about opening its cryptocurrency exchange again sometime in the second quarter of 2024, which could happen as early as April. According to a January interview, FTX CEO John Ray was considering bringing the insolvent exchange back to life.
The court’s ruling
The bankruptcy judge rejected a motion that would have allowed the court to give former FTX CEO Sam “SBF” Bankman-Fried’s legal fees priority during the same hearing. He left it open for SBF to later provide the court with proof pertaining to the motion.
- “Frankly, I have zero evidence to show cause here. Mr Bankman-Fried did not present any proof in any way regarding the fairness of this situation or the harm that will be done to him. I have no idea what private assets he has access to or what other insurance policies he might have that would allow him to pay these expenses upfront and then recoup them later under this policy,” Judge John Dorsey said.
Following the debtors’ statement that a Swiss court had approved a petition permitting the sale of FTX Europe AG, the company’s European division, the bankruptcy court hearings were held. In November 2022, FTX filed for Chapter 11 protection in a U.S. bankruptcy court, along with 133 other subsidiaries.
