Key Highlights:
- FTX scraps plans to reboot, focusing on fully repaying customer funds.
- FTT token value drops by 35% as whales offload following the announcement.
- FTX has recovered over $7 billion in assets, aiming to settle customer claims.
FTX’s U-Turn from Relaunch to Liquidation
Yello Paradisers! In a dramatic shift, the bankrupt crypto exchange FTX has decided to ditch its earlier plans of a grand relaunch as FTX.com. Instead, the company is now steering towards liquidation, with a primary goal of reimbursing customer funds in full. This move marks a significant pivot from FTX’s initial strategy to reboot and cater to international customers.
The Fall of FTT Tokens
Following the revelation of FTX’s new direction, the FTT token took a nosedive, crashing by about 35%. This sell-off was largely driven by whales, who seemed to be playing their cards based on the latest developments. The token, currently trading at $1.72, reflects the market’s reaction to FTX’s changed course.
FTX’s Recovery and Repayment Efforts
In a recent court hearing, FTX attorney Andy Dietderich shed light on the company’s progress in recovering assets and repaying customers. With over $7 billion in assets recovered, FTX is optimistic about fully settling customer claims. The company’s decision has been backed by government regulators, who have agreed to wait for their $9 billion in claims until customers are fully compensated.
The End of FTX’s Relaunch Ambitions
Despite negotiations with potential bidders and investors, FTX faced reluctance from parties to invest the necessary capital for a relaunch. The attorney highlighted the foundational flaws in Sam Bankman-Fried’s approach, describing FTX as an “irresponsible sham” and pointing out the high costs and risks involved in reviving the exchange from its current state.
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