In a recent court hearing on Wednesday, April 12, FTX’s attorney disclosed the company successfully managed to recover 7.3 billion USD. The overall fund is in the form of cash and liquid assets. Since the start of this year, the recovered amount accounts for at least 800 Million USD. Yet it attracted most eyeballs, suggesting that once a leading crypto exchange that collapsed by hip-and-bone could start its operations again.
According to the reports, attorney Andy Deitderich informed about the company’s future planning. The move came into the picture after months-long efforts of amassing the company resources. In addition, the probe to find out the potential reason for the fall of the crypto exchange under the leadership of its Founder and former Chief Executive Officer, Sam Bankman-Fried.
After the Bahamian crypto exchange, FTX filed for Chapter 11 Bankruptcy in November 2022, Sam Bankman-fried was arrested in December same year. He was indicted with multiple charges, including wire fraud, money laundering, etc. After his arrest in the Bahamas by the authorities, he was later extradited to the United States.
As reported by Reuters, the attorney stated that the recent increase in prices of cryptocurrencies acted as an advantage for FTX after its collapse in November 2022 following the user’s massive flocking for the withdrawal of their assets. In 3 days, around 6 billion USD worth of assets were extracted from the exchange in the wake of heavy users’ withdrawals. The overall recovery was valued at 6.2 billion USD.
In addition to the recovery of a significant amount, the possibility of FTX to get operation in the future again gathered industry-wide attention.
FTX’s legal team hinted that the crypto exchange may likely restart its operations by mid-2024.
However, it was not the first instance of optimism around re-opening the now-bankrupt crypto exchange.
Earlier in an interview in January this year, FTX’s Restructuring Officer and Chief Executive Officer, John Ray III, reportedly commenced the idea of reviving the company.
During the Wednesday hearing, Dietderich stated, “The situation has stabilized, and the dumpster fire is out.”
Tailing the optimism after predicting the company’s potential reinstating, FTX’s native token FTT surged significantly. The crypto asset was trading at around 1.32 USD earlier, which rose to 2.74, registering a growth of over 100% daily.
However, analysts suggested keeping a distance from FTT despite the impressive growth in a short period. Popular analyst, Michael van de Poppe, cited the token’s surge and called out, “potential risk of buying is substantially high.”
Later, FTT’s rise calmed and came down below 2 USD. It is trading at 1.95 USD after losing over 19% in the last 24 hours.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/04/14/ftt-rises-as-ftx-recoup-7-3b-from-the-ashes-may-reboot-by-2024/