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The native token of the FTX cryptocurrency exchange, FTT, is up more than 24% over the past 24 hours.
According to CoinMarketCap, in just 24 hours the FTT token has risen by 24.5%, reaching $3.45 at the time of writing. The coin’s market capitalization also increased to $1.13 billion, with trading volumes over the past 24 hours increasing by 133% to $96 million.
Notably, the sharp rise came amid news that dozens of FTX clients have asked a U.S. bankruptcy judge to stop the collapsed cryptocurrency exchange from using 2022 prices to value their cryptocurrency deposits.
My lawyers Moskowitz and Boies that represent FTX creditors in MDL filed an objection to Debtors motion to estimate claims at petition
— Sunil (FTX Creditor Champion) (@sunil_trades) January 12, 2024
Fighting for FTX creditors to maximise recovery for FTX creditors
We may commence our adversary proceeding for property rights as unresolved pic.twitter.com/kBx8KWyScU
They argue that by doing so, FTX is preventing its clients from benefiting from the recovery in cryptocurrency prices. In particular, the most prominent cryptocurrencies owned by FTX clients—Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) — have seen significant increases in value since FTX’s bankruptcy.
In December 2023, the exchange reached an agreement with creditors, and all the hype surrounding FTX now revolves around its possible relaunch. At the beginning of November 2023, the head of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, said that he is not against the relaunch of FTX by the former head of the NYSE if everything is done according to the law.
FTX founder Sam Bankman-Fried was found guilty of seven counts of money laundering, fraud, and conspiracy and faces a maximum penalty of 115 years in prison. Sentencing is scheduled for March 28, with his lawyers expected to appeal the verdict.
Read more: FTX saga: what happened to FTX and Sam Bankman-Fried in 2023