The FTX exchange’s native token, FTT, surged more than 100% after lawyers revealed it had withdrawn additional liquidity from the exchange.
At the latest bankruptcy hearing on April 12, lawyers for Sullivan & Cromwell announced that it had recovered $7.3 billion in liquid assets from the FTX exchange, a sharp increase from $1.9 billion in January. The news caused a sharp increase in the price of FTT, trading at $2.45 at press time.
FTT . Price Chart | Source: TradingView
FTX is currently on the brink of bankruptcy, and lawyers also announced at the hearing that the company is considering reopening the exchange at some point in the future. One potential option discussed is for creditors of FTX to convert some of their holdings into stock once the exchange is up and running.
FTX’s lead attorney, Andy Dietderich, told the court that restarting the exchange was one of many potential options the company was considering going forward. Doing so would require raising significant capital and having an internal debate over whether that capital should come from FTX assets or third-party funding.
Dietderich also mentioned the possibility that customers could choose to receive a portion of their funds in cash from the exchange’s assets in the future and receive some dividends from the exchange in the future. However, the lawyer emphasized that the possibility of restarting FTX is only one of many possibilities, and any decision is not final.
#FTXnative token for $FTT Shares soar more than 100% as lawyers repossess liquid assets https://t.co/3Iph6xYnyQ
— Kyptos (@azcoinnews) April 13, 2023
FTX Trading Ltd. FTX Europe AG and its related debtors also announce that the Board of Directors of FTX Europe AG has submitted a request for a Swiss moratorium. The Swiss court granted the moratorium on April 11, 2023. FTX Europe AG noted that the moratorium will help explore strategic alternatives, including the possibility of selling its business, under the US Bankruptcy Court-approved procurement process.
Pursuant to the suspension order, a Swiss court has appointed administrators of FTX Europe AG. FTX Europe AG is also a debtor in Delaware Chapter 11 proceedings. However, the previously announced process of confirming client balances in preparation for allowing withdrawals from FTX EU Ltd. The moratorium remains in place.
Overall, the possibility of a FTX recovery has created excitement in the crypto world, sending FTT prices soaring. However, the future of the company remains unclear, and any decision to reopen the exchange will depend on a variety of factors, including the availability of funds and the opinion of relevant experts on the case.
- FTX will acquire all assets of the Ren protocol, including Bitcoin and Dogecoin
- FTX Creditors Recover $1.4 Billion Of $12 Billion In Total Debt, And Identify Another $1.7 Billion
Mr. teacher
according to Kyptos
