Cryptocurrency exchange FTX may reopen its services following news about a court hearing on Wednesday by the exchange's attorneys from Sullivan & Cromwell. According to the attorneys, one option for FTX's creditors is to convert a portion of their holdings to a stake in the reopened exchange. After the news broke, FTX's FTT token saw a huge surge in its prices, up to 55%. Additionally, FTX attorneys reported that the exchange had recovered $7.3 billion in liquid assets, which is significantly higher than the $1.9 billion value reported back in January. However, FTX has yet to secure an equity distribution in order to provide enough safeguards for the creditors.

The potential reopening of FTX was met with a mixed response from market analysts. Many pointed at previous legal issues that FTX had to face in the past and raised doubts about the exchange's ability to remain in compliance with the law this time around. Furthermore, some investors were concerned about the lack of a clear plan from the exchange's creditors. Especially considering that the liquid asset that FTX has currently recovered is far short of a full equity distribution.

In the end, only time will tell as to whether FTX will open its services again. Despite the 55% surge in FTT prices, there is still a lot of uncertainty in the market when it comes to FTX's future. However, this is an encouraging sign for the cryptocurrency industry as the exchange is taking steps to protect the interests of its investors.



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