SEC chair's nod to a lawful FTX revival sparks FTT token's 90% rally
FTX’s native token FTT surged by almost 90% in the past 24 hours to a nine-month high of $2.33 following the SEC Chair Gary Gensler’s suggestion that the insolvent exchange could be revived under the proper leadership.
‘Do it within the law.’
Gensler advised any potential buyers of the failed crypto firm to ensure that the firm operates within the gambits of the law, saying the firm must “build the trust of investors and ensure proper disclosures.”
He added:
“[The firm’s leadership must ensure that they] are not commingling all these functions, trading against your customers. Or using their crypto assets for your own purposes.”
His comments came amid reports that Tom Farley, a former president of the New York Stock Exchange, is one of three bidders vying for FTX’s remains in the ongoing bankruptcy process.
Farley is the CEO of Bullish, a crypto exchange launched in 2021, and enjoys backing from Block.one and Peter Thiel.
Recent reports indicate that the efforts to revive the insolvent crypto platform are reaching their conclusion. Three prospective buyers, namely Farley’s Bullish, the cryptocurrency venture capital firm Proof Group, and fintech startup Figure Technologies, are in the running.
Once a successful buyer is determined, they may oversee the reactivation of FTX’s operations following the company’s expected exit from bankruptcy in 2024.
Meanwhile, Gensler’s comment shows that any FTX acquisition would face strict SEC scrutiny, especially following allegations of mishandled customer funds under the firm’s former leadership of Sam Bankman-Fried, who now faces a prison sentence of up to 115 years after he was recently found guilty of all charges by a U.S. jury.
FTT spikes on FTX news
Gensler’s comment has positively affected FTT, which spiked by around 90% to $2.26969 as of press time.
The rally added more than $300 million to the market capitalization of the struggling token, according to CryptoSlate’s data. Its market cap currently sits at $746.49 million.
Data from CoinMarketCap also shows that the asset’s trading volume increased by 940% during the reporting period to $230 million as of press time.
Meanwhile, this is not the first time news of a possible restart has positively influenced FTT’s price performance. Earlier in the year, its value increased by 12% after court filings showed that FTX CEO John J. Ray III was considering a restart plan for the failed exchange.
