The FTX crypto exchange’s native token, FTT, has taken a hammering in the last 24 hours as new information about its Voyager acquisition plans has emerged.
Bloomberg reported on October 20 that a tentative agreement between FTX.US and the troubled crypto lender Voyager Digital could result in the majority of assets being repaid.
The arrangement, which was approved by U.S. Bankruptcy Judge Michael Wiles on Oct. 19, cannot be finalized until Voyager’s bankruptcy payout plan is approved. According to the article, if the deal goes through, Voyager clients might recover up to 72% of the value of their accounts.
In a two-week auction for Voyager’s assets, FTX placed the top bid of $1.42 billion in late September. As part of the deal, Voyager customers would be transferred to the FTX exchange and compensated back for their digital assets.
The native token for Sam Bankman-FTX Fried’s exchange has responded negatively to the latest development in the ongoing dispute.
FTT prices fell 5% in the last 24 hours, reaching an intraday low of $22.35 a few hours ago during the Asian trading session.
The exchange token’s losses are growing, with FTT down 9% in the last two weeks, going from just over $25 to current levels. It has also dropped 73% since its all-time high of slightly over $84 in September 2021.
An inquiry by a Texan securities regulator is adding to the company’s difficulties. Texas State Securities Board enforcement director Joe Rotunda is investigating FTX and its crypto millionaire owner as part of the Voyager bankruptcy case.