SEC Chair Gary Gensler suggested that he’s open to an FTX reboot, as long as it operates “within the law”.
FTT, the native token of the defunct crypto exchange FTX, has surged by more than 80% today.
The token is currently trading at $2.22 and has a 24-hour trading volume of $389 million.
The pump comes following comments made by Gary Gensler, Chair of the US Securities and Exchange Commission (SEC), suggesting that he’s open to an FTX reboot.
In a November 8 interview at DC Fintech Week, Gensler was asked to comment on reports that Tom Farley, the CEO of cryptocurrency exchange Bullish and former NYSE president, is bidding to buy FTX.
In response, he said, “If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law. Build the trust of investors in what you’re doing and ensure that you’re doing the proper disclosures — and also that you’re not commingling all these functions, trading against your customers or using their crypto assets for your own purposes.”
The three companies currently biding for FTX are Bullish, Figure Technologies and Proof Group, according to a November 8 Wall Street Journal article.
While Gensler’s hardline approach to crypto has drawn heavy criticism, his comments here are not unfounded. Last week, Sam Bankman-Fried, the former CEO and Founder of FTX, was charged on seven accounts of fraud and conspiracy.
He is set to face sentencing in March, where he faces a maximum sentence of 110 years.
FTX 2.0 has been underway for some time
Back in April, FTX attorney Andy Dietderich stated that FTX was negotiating options with stakeholders for restart, and that the FTX “dumpster fire is out“.
A month later, a leaked expenses document also alluded to FTX 2.0 proceedings, with items such as “Review and finalize 2.0 reboot of exchange material” listed on the document.
FTX is currently in the process of liquidating its assets and is clawing back funds from every possibly avenue – including cash ‘gifts’ given to Sam Bankman-Fried’s parents.
FTX’s biggest holding is Solana, of which it holds $1.16 billion. Its second biggest holding is Bitcoin ($560 million), followed by Ethereum ($192 million) and Aptos ($137 million).
It also holds $120 million in USDT and $119 million in XRP.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.