FTT skyrockets by over 60% as relaunching plan discussed in latest hearing
The infamous bankrupt crypto exchange – FTX – has recovered assets worth $7.3 billion, according to a report by Reuters. The updated number showed an addition of over $800 million in liquid assets to its January number.
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Moreover, the lawyers have stated that the company is focusing on the future of the exchange as the “dumpster fire is out”.
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Furthermore, there were discussions on the exchange’s plan to relaunch, with the attorneys stating that the plan was considered. The firm, however, would require significant outside capital or would have to sell its assets for a reboot to take place.
Additionally, the restructuring team was considering allowing customers to invest part of their funds in the exchange as one of the means to relaunch. The decision on this could take place as soon as this quarter.
FTX’s token – FTT jumps on the latest hearing
The latest hearing has had the price of FTT – the exchange’s token – skyrocket in the market. According to CoinMarketCap, FTT was trading at $2.73 at press time and registered a growth of over 60% in the past hour.
The coin had a market cap of $744 million and a trading volume of over $114 million. Its one-day chart also registered a growth of 106.35%, while the sevenn-day chart followed the same path.
Notably, the court hearing will also decide whether or not Sam Bankman-Fried can access the $10 million insurance funds to cover his legal expenses. The insurance, taken before the exchange went under, was meant to protect the top executives of FTX from lawsuits.
And, if approved by the court, Relm Insurance and Beazley Insurance could start evaluating whether Bankman-Fried stands eligible for the insurance.
FTX’s European arm could go up for sale
Subsequently, the company made an announcement related to FTX’s European arm earlier today. The firm stated a Swiss court approved its Moratorium to explore options for selling the European arm. Along with the approval, the court also appointed an administrator for the European arm.
The announcement read,
“FTX Europe AG notes the Moratorium process will facilitate the exploration of strategic alternatives, including the previously disclosed potential sale of its business pursuant to U.S. Bankruptcy Court-approved bidding procedures.”
The company also stated that this will not affect its plan to repay the European customers. The repayment process, initiated on 31st March 2023, allows customers to verify balances and make withdrawal requests through a dedicated website.