The FTT token, pegged to the defunct FTX cryptocurrency exchange, saw a significant 84% increase in value overnight.
This rally came after Gary Gensler, the chairman of the United States Securities and Exchange Commission (SEC), expressed his willingness to consider reopening the exchange platform, as long as it complies with current regulations.
Currently, the FTT token is trading at $2.32, according to official data from CoinMarketCap. These comments from Gensler came amid reports suggesting that several potential buyers were considering acquiring FTX, including former NYSE Chairman Tom Farley and his cryptocurrency exchange Bullish.
Gensler emphasized the importance of operating “within the law” and building investor trust, highlighting the need to properly disclose transactions and avoid practices that undermine trust, such as using clients’ crypto assets for personal purposes. .
Despite the enthusiasm generated by this rally in the price of FTT, it is important to highlight that the cryptocurrency is still significantly below its all-time high of $84.18 reached in September 2021. Beyond being involved in its well-known serious legal problems.
The news indicates that FTT played a fundamental role in the fall of FTX in November 2022
The platform had used FTT tokens to liquidate Binance’s stake in July 2021, which subsequently led to the liquidation of these tokens by Binance, triggering a series of events that culminated in the collapse of FTX.
It was also revealed that FTX’s sister trading company, Alameda Research, had used FTT tokens as collateral for billion-dollar loans, in addition to commingling funds from FTX users.
Additionally, FTX founder Sam Bankman-Fried was reportedly found guilty last week of seven counts of fraud and conspiracy related to the exchange’s collapse, facing a possible maximum sentence of 115 years in prison.