FTX Proposes Crypto Exchange Reopening Plans, FTT Token Prices Fly Immediately!

Token FTT. (Photo; Doc. Business2community)

JAKARTA - The legal team representing debtors of the bankrupt FTX crypto exchange, Sullivan & Cromwell, is proposing that the exchange may consider reopening operations in mid-2023. This proposal is believed to have a positive impact on the price of FTX's FTT token. This announcement was made in a court hearing on Wednesday, April 12.

The legal team also mentioned that since FTX announced its bankruptcy, the crypto company has recovered nearly US$7.3 billion worth of liquid assets (IDR 107 trillion). In addition, a report filed by debtors in March noted that the four entities in the FTX group have scheduled assets worth a total of US$4.8 billion (IDR 70 trillion).

Based on information from the legal team, FTX is likely to consider the option to restart operations of the crypto exchange in the second quarter of 2024. In January this year, the new CEO of FTX, John Ray, has stated that he is working to revive the exchange.

In recent discussions, FTX's legal team also discussed the option of allowing FTX's creditors to convert part of their holdings into shares on a reopened exchange.

The news of this reopening has moved the price of FTX's FTT token. When lawyers announced plans for the potential reboot, the FTT token price jumped from $1.32 (about $1.94) to $2.80 ($41,200), an increase of more than 112 percent in no time.

(Doc. Coingecko)

When this news was written, the FTT price was trading at the level of IDR 34,163 per token. Despite this, the FTT token is still trading at a 90 percent discount from its pre-bankrupt price.

At yesterday's court hearing, Andy Dietderich, lead attorney for FTX, stated that restarting the exchange's operations was one of many options being considered by FTX. "There are as many opinions on this subject, I think as many as there are professionals involved in this case," Dietderich said as quoted by CoinSpeaker.

Dietderich added that restarting the exchange's operations would also require substantial funding. In addition, there is an internal debate over whether the funds should come from FTX capital or from third-party capital.