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Home » FTX token rises 300% despite bankruptcy proceedings

FTX token rises 300% despite bankruptcy proceedings

Important facts:
  • FTX has been facing bankruptcy proceedings for a year.

  • Former FTX CEO Sam Bankman-Fried has been found guilty of multiple counts of fraud.

The token of bankrupt cryptocurrency and Bitcoin (BTC) exchange FTX has surprisingly gained momentum. Its price has increased by 300% in the last seven days.

Last Saturday, the token was priced at $1.18. However, since Wednesday started rising so much that the price is currently at $4.44as can be seen in the graphic provided by TradingView.

FTT token price in the last seven days. Source: TradingView.

The striking thing about this increase is that it occurs despite the fact that the platform it belongs to is in bankruptcy proceedings. In fact, CoinMarketCap warns in its website that the FTT token “no longer has any use and may be liquidated by the estate to pay creditors.” “Proceed with caution.”

Words from Gary Gensler, Chairman of the SEC

The token’s price increase was influenced by US Securities and Exchange Commission (SEC) President Gary Gensler on November 8th.

Gensler the opportunity arose about what FTX could be revivedas long as there is leadership that understands the law, American broadcaster CNBC reported.

The official referred directly to Tom Farley, the former president of the New York Stock Exchange. stated to be Interested in acquiring FTX. Farley He started its own digital asset exchange called Bullish.

“If Tom or anyone else wanted to get into this field, I would tell them to do it within the law,” Gensler said. In addition, he explained that entrepreneurs need to build trust among investors and ensure that they make “appropriate disclosures.”

Exactly today, November 11th, FTX, one of the largest cryptocurrency exchanges on the market, has filed for bankruptcy. On that day, the filing for protection under Chapter 11 of the U.S. Bankruptcy Code was officially filed, CriptoNoticias reported.

The bankruptcy triggered a bear market in Bitcoin and other cryptocurrencies. Causing billions in losses for stock market customers and hundreds of companies linked to the platform.

Following a trial a few days ago, Sam Bankman-Fried, former CEO of the exchange, was found guilty of all fraud charges against him and is now awaiting sentencing. These include two counts of wire fraud, four counts of conspiracy to commit fraud and one count of money laundering.

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