FTT, the native currency of FTX and its ecosystem, is up 45% when writing on June 28. This positive price action follows a report by the Wall Street Journal that the exchange’s new management has started receiving proposals from parties interested in restarting the exchange.
The unconfirmed report cited the chief executive officer, John J. Ray III, who took over FTX when it officially filed for bankruptcy in mid-November 2022.
Will FTX Be Restarted?
Sources report that the management team of the cryptocurrency exchange has been in discussions with investors interested in seeing the platform back up and running.
Different ownership and management structures are being considered as part of this effort. A joint venture is one option, which would involve compensating existing clients affected by the FTX bankruptcy through stakes in the new organization. Additionally, when the exchange is relaunched, it will operate under a new brand name to improve its reputation and regain trust.
Rumors of this restart are six months after Ray III said he was setting up a task force to explore resuming operations. The CEO also added that despite the alleged illegal activities committed by executives, mainly Sam Bankman-Fried and Alameda Research, the exchange’s business model was feasible. A restructuring and a restart of the exchange, observers note, will be a better outcome for its millions of clients who were adversely affected after the exchange unexpectedly filed for bankruptcy last year.
Following the collapse of FTX, the cryptocurrency market tanked, with Bitcoin and Ethereum sinking to new 2022 lows. In a bear market of last year, the FTX collapse forced BTC prices below $16k.
At the same time, FTT, the native currency of FTX, sank 92%. Despite the current expansion, the token is far from its October 2021 highs when each FTT was changing hands at over $69. When writing on June 28, FTT is trading at $1.73 with a market capitalization of $576,331,728.
Charges Against Sam Bankman-Fried And Alameda Research
Sam Bankman-Fried, the founder of FTX, is charged with wire fraud, commodities fraud, money laundering, and bribery, among others, following an investigation by the United States Commodity Futures Trading Commission (CFTC).
The agency sought to discover whether FTX and Alameda Research knowingly engaged in market manipulation and if there was a conflict of interest. The CFTC also alleges that FTX and its trading wing, Alameda Research, failed to disclose their trading activities to clients while using their funds to support FTT prices.
Amid this, Bankman-Fried is accused of using Alameda funds to cover his expenses, including donating $10 million to a political party. He has pleaded not guilty to all charges, and a trial is planned for October 2023.
Feature Image From Canva, Chart From TradingView