FTX Gets Court Approval, FTT Token Soars 50%

FTX has court approval, FTT tokens have jumped 50% (Photo; Doc. Nytimes)

JAKARTA - FTX's original token, the FTT, showed a value spike of more than 50% after a United States court approved the corporate bankruptcy restructuring plan. Now, FTX has the green light to pay full creditors using assets that have been recovered worth 16 billion US Dollars (Rp250 trillion), including interest. However, Judge John Dorsey still insists that the value of the FTT token is still considered zero.

This court decision brings a glimmer of hope to creditors who for almost two years have been plagued by uncertainty due to the FTX bankruptcy case. A total of 98% of the creditors involved will receive payments of up to 119% of the claims that have been approved, with payment projections made within 60 days of the plan being effective.

The long process of FTX restructuring began when the company filed for the Protection of Chapter 11 bankruptcy in the United States, after the disclosure of a scandal over the use of customer funds for risky investments made by former FTX CEO Sam Bankman-Fried, in November 2022. The disclosure rocked the crypto world and resulted in the collapse of one of the largest crypto exchanges at the time.

This approved plan not only ended the uncertainty for creditors, but also marked the success of a professional team led by John J. Ray III, CEO and FTX Chief Restructuring Officer, who have worked hard to recover funds from various sources around the world.

Quoted from Crypto Briefing, Ray said, "This success is the result of the hard work of the team that has rebuilt FTX's financial records and coordinated with various government agencies around the world. The funds that have been successfully recovered come from FTX assets, international branches, as well as collaboration with authorities.

Although the value of the FTT had jumped to 3.23 US Dollars (Rp50,565) after court approval, CoinGecko reported that its value was stable at 2.72 US Dollars (Rp42,581). However, Judge Dorsey confirmed that the token had no intrinsic value. "I found no evidence that FTT has a value of more than zero," he stressed. This confirms that despite speculation in the market, the rise of FTT tokens seems unlikely.

With assets restored estimated to range between 14.7 billion US Dollars (Rp229.5 trillion) to 16.5 billion US Dollars (Rp257.5 trillion), the funds will be distributed to more than 200 jurisdictions with close supervision from special agents to ensure security and efficiency of delivery. Although there are some debates regarding payment methods, the court has ruled that payments will be made in cash.