FTT Surges as SEC Chair Hints at FTX Revival

FTX, the embattled crypto exchange, witnessed a remarkable surge in its digital token, FTT, following comments by U.S. Securities and Exchange Commission Chair Gary Gensler at DC Fintech Week. Gensler’s encouragement came in response to discussions about a bid for FTX by Tom Farley, former president of the New York Stock Exchange.

Gensler emphasised, “If Tom or anybody else wanted to be in this field, I would say do it within the law. Build the trust of investors… ensure that you’re not commingling all these functions, trading against your customers, or using their crypto assets for your own purposes.”

FTT’s value spiked by 84% after Gensler’s remarks, signalling market confidence in FTX’s potential revival, although FTT remains below its value two years ago. This development follows the recent conviction of FTX founder Sam Bankman-Fried on seven fraud charges, resulting in the collapse of FTX in 2022.

Renowned attorney John Jay Ray III is overseeing FTX’s financial restructuring, aiming to return recovered funds to customers pending approval by the U.S. Bankruptcy Court in mid-2024. Potential buyers, including Tom Farley and fintech startup Figure Technologies, are eyeing FTX post-bankruptcy.

U.S. Attorney Damian Williams warned wrongdoers in the crypto space, emphasising stringent law enforcement against non-compliance with international regulations.

Bankman-Fried’s defence plans to appeal the verdict, with his sentencing scheduled for March 2024.