According to the latest information from the US hearing, the bankrupt cryptocurrency exchange FTX stated in the recent hearing that it will fully compensate its crypto customers and announced that it will give up restarting its exchange business. But is the situation really that simple?
(Previous summary:
FTX aggressively sold cryptocurrency assets? Cash reserves doubled to 4.4 billion HKD within 3 months! Hoping to raise funds to repay users.)
(Background:
FTX claims hearing scheduled for January 25th! Creditors optimistic about “possible direct compensation”, compensation rate increased to 80%.)
The bankrupt cryptocurrency exchange FTX has provided an update on its liquidation progress. According to a recent post by cryptocurrency trader Ashcryptoreal, the latest information from the court hearing shows that FTX Exchange is expected to fully compensate its cryptocurrency customers in the bankruptcy liquidation. At the same time, the lawyers stated that FTX will give up restarting its cryptocurrency exchange as no buyers have appeared.
He optimistically stated:
However, SC&P executive Baylor Landry reminded the market not to be overly optimistic because the amount of customer compensation will be calculated based on the market price at the time of FTX’s bankruptcy:
FTT fell sharply by 25%
The market was originally optimistic about FTX’s restart of the exchange. Yesterday (31st), the price of FTX’s platform token FTT also rose from around $2.65 to $2.99. However, due to the release of the news that FTX will give up restarting the exchange during the hearing, FTT quickly plummeted from around $3 to $2.29 within 10 minutes, with a short-term decline of over 25%. At the time of writing, it had slightly rebounded to $2.31, still down 14.9% in the past 24 hours.
FTT trend. Image source: CoinGecko
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