FTX (FTT) exchange token surges 107% on news of bankruptcy re-launch plan The cryptocurrency FTT has reached new highs since the exchange went bankrupt after FTX lawyers announced to the court that a reorganization of the exchange could involve its revival
The native token of the exchange FTX (FTT) price skyrocketed after news of a potential relaunch of the insolvent crypto platform. The price of FTT jumped 107% in a moment, from $1.32 to $2.74, hitting its highest since November 11, when the platform declared bankruptcy. The price increase came after FTX lawyers told the court of their plan to prepare a restructuring plan for the platform.
At a court hearing on April 12, FTX bankruptcy attorney Andy Ditderich from law firm Sullivan & Cromwell said FTX plans to present a preliminary reorganization plan in July, CoinDesk reports. The plan could include a restart of the exchange, Ditderich said.
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According to Sullivan & Cromwell reports, lawyers examined potential issues that could arise in restarting FTX. They considered cybersecurity, and taxation and discussed “creating a prototype of the exchange to test the user experience.”
So far, the company has recovered $7.3 billion in mostly liquid, distributable assets, according to the lawyer’s presentation. Earlier, a much lower figure of about $2.8 billion had been mentioned, with the exchange having $11.6 billion in liabilities to creditors.
FTT is trading at $2.49. According to CoinGecko, its price is up 87% overnight. In November 2022, before the FTX collapse, FTT was trading around $22-25, but the exchange’s collapse brought the coin’s price down to $1.5. It never rose above $2.62 from Nov. 12 to April 12, according to CoinGecko.