FTX’s FTT token falls by over 40% as the exchange relaunch denied

FTX exchange of Sam Bankman-Fried has pledged to fully reimburse customers and creditors affected by its current bankruptcy proceedings.

The company assured the overseeing judge that affected individuals, if they could prove their losses, would receive their entire investment.

However, the promise of complete asset recovery is not without caveats. The reimbursement values are linked to the official declaration of bankruptcy by FTX, which occurred during a period of turbulent market conditions.

This condition has been approved by US Bankruptcy Judge John Dorsey, emphasizing the situation’s complexities.

There’s no indication of an FTX 2.0 on the horizon. Andrew Dietderich, a legal representative, emphasized the importance of rigorous scrutiny in distinguishing legitimate claims from the large number of submissions.

This meticulous assessment aims to navigate millions of claims while ensuring the reimbursement process’s integrity.

Furthermore, Dietderich stated that FTX has shifted its focus to compensating former clients rather than relaunching its platform, known as “FTX 2.0,” due to a lack of buyers, as revealed by court proceedings.

Following Dietderich’s announcement, FTX’s native token, FTT, saw a brief surge of more than 20%, rising from $2.5 to $3.01 in response to the company’s restitution plans.

However, this optimism was short-lived. The FTT token dropped by over 40% on the day and is now trading at $1.8.