2023-6-29 11:58 |
The FTX token has jumped to a new multi-month high after John Ray, the new chief executive of FTX, said he’s open to the idea of a fresh reboot for the failed crypto exchange.
FTT, which has reacted higher multiple times this year on news of an FTX restart, the so-called FTX 2.0, had a similar bump on Thursday. The token raced to a high of $1.84, gaining by more than 40% as it rallied from lows of $1.21. FTT has soared more than 116% over the past two weeks.
Ray’s latest comments on the idea of restarting the exchange, which dramatically collapsed in 2022 with $8.7 billion of customer funds “lost,” comes on the back of reports of $7 billion being recovered so far. This even as the new CEO says the company’s reorganization strategy, which now includes a bidding process for the potential restart, is focused on returning value to the customers.
Market observers say the restart could offer the outcome that best suits the impacted clients, notably because FTX is seen as having been a great crypto business only ruined by the management – or lack of it – of founder and former CEO Sam Bankman-Fried.
Bankman-Fried is facing several charges related to fraud, which stem from the key issue around commingling of customer funds and corporate assets.
Regulatory scrutiny on exchangesThe collapse of FTX saw the crypto market descend into further rot at the end of last year, and has prompted a series of enforcement actions from the SEC.
The past few months have indeed witnessed increased regulatory scrutiny [read more] on crypto exchanges, with regulators seemingly “shocked” into action after FTX’s demise.
Amid that was a valiant attempt by some exchanges to provide clarity and assurance to customers that their funds are not mixed up and misused. Platforms scrambled to publish their proof-of-reserves, with this now tracked here.
Notably, the SEC’s lawsuit against Binance and its CEO Changpeng Zhao has included allegations of commingling of customer deposits.
The post FTT soars as new FTX CEO says exchange restart possible appeared first on Invezz.
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