Crypto News

FTT Token Surges 84% Following Gensler’s Hint at FTX Revival

Crypto News FTT

FTT, the token associated with the defunct crypto exchange FTX, experienced an impressive surge of over 84% in response to SEC chair Gary Gensler’s indication of a potential revival of the exchange, emphasizing that any such revival must adhere to legal standards.

As of now, FTT is trading at $2.29, according to CoinGecko.

Gensler’s statement came in the wake of reports that three potential buyers, including former NYSE president Tom Farley’s crypto exchange Bullish, are considering the acquisition of FTX. Gensler emphasized that any entity entering this field must operate within legal boundaries.

He further advised that the future owner of FTX should prioritize building trust with investors, ensuring transparent disclosures, and refraining from mixing various functions, such as trading against customers or misusing their crypto assets.

It’s important to note that there’s no indication that the FTT token will be directly involved in any potential revival of FTX.

FTT’s current surge should be viewed in the context of its significant decline, having dropped over 97% from its all-time high of $84.18 recorded in September 2021.

The FTT token played a pivotal role in the downfall of FTX in November 2022. This was triggered by FTX’s utilization of FTT tokens to cash out Binance’s equity stake in July 2021, followed by Binance liquidating these assets. This series of events, coupled with other revelations, ultimately led to FTX’s collapse.

Additionally, it was revealed that FTX’s affiliated trading firm, Alameda Research, had engaged in multi-billion dollar loans using FTT tokens as collateral, along with mingling funds from FTX users.

FTX’s founder, Sam Bankman-Fried, was recently convicted on seven counts of fraud and conspiracy related to the exchange’s collapse. He faces a potential maximum sentence of 115 years in jail, with his sentencing scheduled for March 2024.

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