With the long-awaited end to the FTX saga nearing, the recent bankruptcy distribution has the now-defunct exchange FTT token surging by 70%. Indeed, the native token of the platform has seen a bullish boost from the recent developments that should benefit long-struggling creditors.
The FTX collapse is among the greatest controversies in the crypto sector. Once a pillar of strength for the market, it became the harbinger of one of the United States’ largest white-collar crimes. Moreover, it led to the arrest of founder Sam Bankman-Fried, who is now serving a 25-year prison sentence.
Also Read: FTX Wallet Unstakes Millions: Is a Solana Selloff Imminent?
FTX Native Token Sees Renewed Surge As Bankruptcy Distributions Near
The fall of FTX had a massive impact on Crypto. As the industry rose to prominence, few brands were as well known and displayed as the cryptocurrency exchange. The platform had been integrated with massive enterprises like Major League Baseball, and the National Basketball Association Miami Heat.
Yet, that all fell apart in late 2023. The exchange was exposed for fraud through its sister platform, Alameda Research. Altogether, it costs creditors more than $8 billion. With the founder behind bars, and CEO Caroline Ellison officially sentenced, the exchange’s bankruptcy hearings are ongoing.
Also Read: FTX: Caroline Ellison Plea for No Jail Time for Role in Collapse
Now, interest in FTX native token FTT has surged as much as 70% amid the platform’s bankruptcy distribution. According to CoinGecko, the coin had reached highs of $2.70 on Sunday. Additionally, that has been the highest mark for the token since March of 2024.
For much of September, the token traded around the $1.4 mark. The increase came from those signaling that bankruptcy distributions could come as early as Monday. Yet, that is not likely to be the case. The bankruptcy plan has yet to be approved, with the next hearing coming on October 7th. Still, FTT should continue to gain ground as that date approaches.
