FTX Cryptocurrency Jumps Over 35% After CEO John Ray Says Bankrupt Crypto Exchange May Restart

FTX Cryptocurrency Jumps Over 35% After CEO John Ray Says Bankrupt Crypto Exchange May Restart

The FTX token surged more than 35% in value on Thursday on news that the bankrupt cryptocurrency exchange could restart.

The FTX token, trading under the ticker FTT, opened at $1.83 and peaked at $2.51 shortly before noon, according to data from CoinDesk.

The token rallied after CEO John Ray III told the Wall Street Journal in an interview that the company’s main international exchange at FTX.com may be restarted.

“Everything is on the table,” Ray said. “If there’s a way forward in that, then we’re not just going to explore it, we’re going to do it.”

FTX SAYS HACKERS STOLEN $415M AFTER CRYPTOCURRENCY EXCHANGE FILED BANKRUPTCY

In this photo illustration the FTX Token (FTT) stock trading chart seen on a smartphone screen

In this photo illustration, the FTX Token (FTT) stock trading chart is seen displayed on a smartphone screen. (Rafael Henrique/SOPA Images/LightRocket via Getty Images/Getty Images)

FTX filed for bankruptcy in November after a liquidity crisis in which then-CEO Sam Bankman-Fried acknowledged the company did not have enough assets to cover a spate of client withdrawals. Hours after filing for bankruptcy, FTX claimed it was hacked, saying $415 million was stolen from the exchange in “unauthorized transactions.”

Ray, who was appointed to run the company through its Chapter 11 bankruptcy proceedings, testified before Congress that the stock’s crash was due to mismanagement and “a complete failure of corporate controls at all levels.” . He said FTX gambled with client assets by mixing them with Alameda Research, another firm owned by Bankman-Fried.

SAM BANKMAN-FRIED DEFENDS HIMSELF IN ONLINE PUBLICATION: ‘I DID NOT STEAL FUNDS’

John J. Ray III, CEO of FTX Group, testifies during the House Financial Services Committee

John J. Ray III, CEO of FTX Group, testifies during the House Financial Services Committee hearing titled Investigating the Collapse of FTX Part I on December 13, 2022, at the US Capitol. in Washington, D.C. (Nathan Howard/Getty Images/Getty Images)

Under his leadership, FTX is working to recover its assets and pay customers. FTX met with debtors on Tuesday and said it has recovered about $5.5 billion in liquid assets, although there is a “substantial shortfall” of $415 million that was allegedly stolen by hackers, FTX said.

Over the past two months, Ray has overhauled FTX’s structure, put in place the necessary corporate governance and laid off dozens of employees, he told the Journal. Ray said that forensic teams are reviewing FTX data to find additional assets and mentioned that FTX discovered new wallets only last week.

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Sam Bankman-Fried out on bail

FTX founder Sam Bankman-Fried leaves Manhattan Federal Court following his arraignment and bond hearings on December 22, 2022 in New York City. (David Dee Delgado/Getty Images/Getty Images)

He also said that FTX.com could be reactivated to serve clients outside the US if doing so would recover more value for the company’s clients than liquidating assets or selling the platform.

“There are stakeholders that we are working with that have identified what they see as a viable business,” he said.

Bankman-Fried now faces criminal charges from the Southern District of New York and the Securities and Exchange Commission.

Federal prosecutors say he used millions of dollars in client funds to finance a lavish lifestyle. Former Alameda CEO Caroline Ellison is reportedly cooperating with investigators against Bankman-Fried, who has insisted she did not steal client funds.

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Bankman-Fried is facing charges including conspiracy to commit wire fraud, conspiracy to commit commodity fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and commit government financing violations. bells.

He pleaded not guilty and was released on $250 million bail last month.

FOX Business’s Louis Casiano contributed to this report.

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