FTX’s attorneys have suggested the possibility of the exchange reopening by mid-2023, triggering a surge in FTT token prices.
During a court hearing on April 12, attorneys from Sullivan & Cromwell announced that FTX had recovered around $7.3 billion in liquid assets since announcing bankruptcy.
They further added that the exchange might consider restarting its crypto operations by Q2 2024, which could involve creditors converting a portion of their holdings to a stake in the reopened exchange.
The price of FTT tokens surged from $1.32 to $2.80, surging by over 112% in response to the announcement. However, FTT is still trading at a 90% discount from its pre-bankruptcy levels.
Restarting the exchange would require significant capital and there is an internal debate about whether the funds should come from FTX’s estate capital or through third-party capital, according to the lead attorney for FTX.
