After a dramatic fall caused by the antics of its co-founder SBF, who is now facing legal accountability, FTX is ready to turn things around! Indeed, the famous cryptocurrency exchange recently raised the possibility of a reopening, having recovered a whopping $7.3 billion. This announcement immediately created a buzz in the cryptocurrency world, with a significant increase in the price of the FTT token.
FTX plans to reopen under new leadership after high-profile scandal
After numerous scandals and controversies, FTX tries to rise from the ashes. Attorneys for the exchange recently announced their intention to resume the exchange’s operations later this year at a hearing in Delaware bankruptcy court on Wednesday, April 12.
At the hearing, attorneys said that customer funds had been recovered and that a plan of reorganization for the company would be filed by July, according to The Block.
However, the lawyer Andy Dietderich from the firm Sullivan & Cromwell noted that the exchange would need to raise several funds to reopen, even though it had already recovered $7.3 billion in cash and crypto assets.
Dietderich also explained that the situation of the stock market was now under control and that the problems had been solved, although the company’s debts remain, including a debt of about $3 billion to 50 VIP creditors.
Two options are currently being considered: either reimburse a portion of the funds to the injured clients, or restart the activities of the company and offer customers an interest in the FTX exchange as compensation. A final decision is expected before the end of the second quarter.
Despite this positive announcement, it remains to be seen whether FTX will be able to regain investor confidence and successfully relaunch its operations.
FTT, a jump of more than 100% following the announcement of the exchange’s recovery
Following this announcement, the FTT token rose sharply by more than 100% from $1.33 to $2.72.
The new CEO of FTX, John Ray, had already raised the idea of reopening the platform earlier this year, saying that it would restore value to shareholders and customers harmed by the exchange. However, the issue of customer confidence remains a major challenge for the Exchange.
For some loyal customers, this announcement represents a glimmer of hope. But only time will tell which option FTX will choose. It remains to be seen whether the platform will be able to regain the trust of its customers after the unfortunate events that have tainted his reputation.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.