Bankrupt Exchange’s FTX Token Astonishes with 60% Surge — Unraveling the Cryptocurrency Phenomenon Linked to Sam Bankman-Fried’s Platform

The digital token associated with the now-defunct crypto exchange FTX FTT/USD experienced a significant surge on Sunday, eclipsing the advances of other cryptocurrencies.

What happened: The token FTT saw its value skyrocket by over 60% in the past day, positioning itself as the standout performer in the market. Trading activity for FTT swelled impressively by 3734%, propelling the cryptocurrency to price points last witnessed in mid-March.

This surge stood in stark contrast to the overall crypto market, which saw a decrease in total capitalization by 1.89% within the same timeframe.

Despite FTT’s sharp price increase, it currently lacks any practical application. The token’s value plummeted by over 90% following the exposure of FTX’s fraudulent practices, culminating in the exchange filing for bankruptcy in late 2022.

Sam Bankman-Fried, FTX’s notorious former CEO, received a 25-year prison sentence in March due to his involvement in the high-profile scandal.

See Also: Maxine Waters Regards Crypto as ‘Inevitable,’ Cites Other Nations’ Superior Progress

Why It Matters: The notable increase in FTT’s price happened amid whispers that FTX might initiate repayment to defrauded parties on Sept. 30.

However, these speculations were firmly refuted by FTX creditor advocate Sunil Kavuri, clarifying that the upcoming court date to discuss the reorganization plan was actually scheduled for Oct. 7.

Provided the plan is approved, claimants owed less than $50,000 could anticipate reimbursements by the end of 2024, while those with larger claims may have to wait until either the first or second quarter of 2025, as per Kavuri’s statement.

Price Action: FTT is currently trading at $2.31, marking a 61% rise over the previous 24 hours, based on information from Benzinga Pro.

Photo courtesy of Sergei Elagin via Shutterstock

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