FTX token hits highest value in four months, as firm’s attorney reveals plan to reopen

The token offered by the cryptocurrency exchange, Futures Exchange Trading (FTX), appreciated in value by 74.04 per cent in the last 24 hours after reports emerged that the closed crypto could reopen to the public.

Ripples Nigeria had reported that FTX filed for bankruptcy due to alleged financial abuse by the co-founder, Sam Bankman-Fried.

He was accused of misappropriation of funds such as using investors’ funds for personal gains, acquiring real estate assets and also donating large capital to the presidential campaign of the current United States President, Joe Biden.

Bankman-Fried was arrested and was slammed with 12 charges, including an allegation of fraudulently raising $1.8 billion from investors since May 2019, out of which $1.1 billion was provided by 90 U.S.-based investors.

Six months after, attorney Andy Dietderich who represents Sullivan & Cromwell, the legal counsel of FTX, said there were many options on the table for the firm and one of them was to reopen a new exchange.

Dietderich said if FTX was to reopen its exchange business, investors will most likely have to take up a stake in the new business in exchange for their investment that would have been paid in cash.

Read also:Access to evidence might delay criminal trial of FTX founder, Sam Bankman-Fried

“There are possibilities that customers could have an option to take part of their proceeds that they would otherwise receive in cash from the estate and receive some kind of an interest in the exchange going forward,” Dietderich told the court on Wednesday.

Although he said to reopen, FTX would have to raise a significant amount to fund the business. This comes as the recovery fund increased from $1.9 billion in January to $7.3 billion.

The report of FTX resuming operation sent the firm’s token up the roof by 74.04 per cent as of the period of filing this report on Thursday, as demand for the crypto token hit $2.28, up from its lowest in 24 hours, $1.33.

This is higher than the 56.47 per cent growth recorded in the first quarter of 2023, when FTX Token appreciated from $0.85 to $1.33 within three months – indicating the crypto token grew higher in 24 hours than it had in three months.

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