FTT Surges 50% On FTX Creditors Claims Settlement And Billions In Compensation: How High Can It Rise?

In a significant development, defunct cryptocurrency exchange FTX has unveiled a reorganization plan to reimburse almost all of its customers.  The announcement has sparked a substantial surge in the exchange’s native token, FTT, which recorded an uptrend of 52% over the past seven days, reaching a monthly high of $2.29 during Wednesday’s early trading session. FTX Unveils Debt Repayment Strategy FTX estimates its outstanding debts to creditors to be approximately $11.2 billion, as revealed in the reorganization plan published late Tuesday. The company has disclosed that it possesses between $14.5 billion and $16.3 billion, which it intends to distribute among the creditors. Under the proposed plan, customers with $50,000 or less claims will receive approximately 118% of the allowed claim amount. This compensation is slated to be disbursed to around 98% of the creditors, relieving FTX customers who have experienced locked funds since the exchange filed for bankruptcy protection in November 2022.  Related Reading: Bitcoin Suffers Massive Outflows Amid Crypto Market Uncertainty, Tops $284 Million FTX stated in a press release on Wednesday that the company could not utilize the appreciation of the missing tokens during the Chapter 11 cases. Instead, FTX had to identify other recoverable sources of value to repay creditors.  Following the departure of founder Sam Bankman-Fried, FTX appointed John Ray III as CEO. Ray, speaking on the matter in November 2022, expressed his astonishment at the “complete failure of corporate controls and such a complete absence of trustworthy financial information” witnessed at FTX. Ray further stated in the press release on Wednesday:  We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors.  FTX’s founder, Sam Bankman-Fried, faced legal consequences, being convicted on seven criminal counts, including charges related to embezzling billions of dollars from FTX’s customers. Bankman-Fried was subsequently sentenced to 25 years in prison. FTT Bulls Eyeing $2.55 For Potential Breakout Continuation As of the latest update, the price of FTT has corrected to $2.050 after reaching its monthly high. This breakout occurred after consolidation between the $1.17 and $1.48 levels. At the current price level, FTT faces a significant resistance at $2.169, which has led to the ongoing correction. If FTT sustains its bullish momentum, the next resistance level to watch is $2.55 in the token’s daily chart.  A successful breakthrough of this level could potentially lead to a retest of the $3 mark, which has not been revisited since January. Related Reading: Forget The Price Dip: Ethereum Network Activity Hints At Imminent Takeoff On the other hand, if the price experiences a further correction, FTT bulls should closely monitor the $1.95 and $1.765 levels, as they serve as crucial support levels. It is essential to prevent a loss of the gains achieved over the past month, which amounts to an 18% increase during this period. Featured image from Shutterstock, chart from TradingView.com

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FTX Co-Founder Sam Bankman-Fried Appeals 25-Year Conviction And Makes Unusual Request

In a dramatic turn of events, Sam Bankman-Fried, the founder of the now-defunct cryptocurrency exchange FTX, has been sentenced to 25 years in prison for defrauding users. The judgment was handed down by US District Judge Lewis Kaplan during a hearing in a Lower Manhattan federal courtroom on March 28.  Bankman-Fried, who had publicly announced [...]

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BREAKING: Sam Bankman-Fried Sentenced To 25 Years In Prison

In a highly anticipated courtroom verdict, Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, has been sentenced to 25 years in prison for defrauding users. US District Judge Lewis Kaplan delivered the judgment during a Lower Manhattan federal courtroom hearing. Related Reading: The Bulls Are Back: Spot Bitcoin Inflows Surge With New Records FTX Founder Sam Bankman-Fried Sentenced Judge Kaplan sternly criticized the defense’s argument, labeling it as misleading, logically flawed, and speculative. As reported by our sister site, Bitcoinist, Kaplan highlighted Bankman-Fried’s obstruction of justice and witness tampering during his defense, which were significant factors considered in the sentencing decision. Bankman-Fried expressed remorse in a statement, acknowledging that his series of “selfish” decisions as the leader of FTX had led to the exchange’s downfall. He admitted to having “thrown it all away” and expressed regret that continues to haunt him daily. Prosecutors had initially sought a maximum sentence of 50 years, while Bankman-Fried’s legal team argued for a maximum of 6 years. In November, Bankman-Fried was found guilty on seven criminal counts, and he has since been held at the Metropolitan Detention Center in Brooklyn. Life Plans Shattered Late Tuesday, prosecutors submitted documents containing testimonies from victims, shedding light on the impact of Bankman-Fried’s actions. One victim, whose name was redacted, wrote a letter dated March 15, describing the destruction of their entire life and the emotional toll it had taken on their family.  They emphasized that they had entrusted their funds to FTX as a custodian, not consenting to the risks Bankman-Fried had taken with their money. The victim shared the suffering that had led to depression and even thoughts of suicide. Related Reading: Fantom: Market Slowdown Chops Off 10% From Gains Heres Why During the trial, prosecutors revealed that Bankman-Fried had diverted funds from FTX customers, amounting to as much as $8 billion. These funds were allegedly used to finance a wide range of external interests, including political initiatives, speculative investments, and funding the lifestyles of FTX executives. Featured image from Shutterstock, chart from TradingView.com

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BREAKING: FTX Founder SBF On The Brink Of Jail: Judge Set To Rule On Bail

According to a recent report by Reuters, Sam Bankman-Fried, former CEO and founder of the bankrupt cryptocurrency exchange FTX, has had his bail conditions tightened by a US judge following allegations of witness tampering.  While the judge declined to jail Bankman-Fried immediately, he imposed a “gag order” requested by prosecutors and gave both sides until August 3 to submit written statements detailing their positions.  FTX Founder Accused Of Witness Tampering By U.S. Prosecutors Per the report, U.S. Prosecutors had requested that Bankman-Fried be jailed, accusing him of crossing a line by sharing the personal writings of his former partner, Caroline Ellison, with a journalist. This was said to be a second instance of witness tampering. Related Reading: FOMC Delivers Expected 0.25% Rate Hike, Bitcoin Holds Steady Above $29,000 Bankman-Fried is facing trial over the collapse of FTX, with prosecutors alleging that he stole billions of dollars in customer funds to plug losses at his crypto hedge fund, Alameda Research. He has pleaded not guilty to the charges. Ellison, who was Alameda’s former CEO, has pleaded guilty to fraud charges and has agreed to cooperate with prosecutors. Bankman-Fried has mainly been confined to his parent’s home in California since his extradition from the Bahamas in December 2020, where FTX was based. Related Reading: Bitcoin: What On-Chain Data Says About The Latest Dip Below $30,000 However, Bankman-Fried’s lawyer Mark Cohen argued that his client was merely trying to protect his reputation through his contacts with journalists and that it would be challenging to prepare for trial if he were jailed. Overall, investors and industry participants will closely watch the outcome of Bankman-Fried’s case. The FTX former CEO is a prominent figure in the cryptocurrency world, and his case will serve as a key test of the industry’s legal and regulatory framework. Featured image from Unsplash, chart from TradingView.com

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SEC Charges SBF Of Allegedly Conducting Fraud Schemes

The crypto community was left shell-shocked in November 2022 when FTX – one of the leading crypto exchange platforms, filed for bankruptcy. Pessimism towards crypto is at an all-time high, with famous investors like Warren Buffet seemingly right about the risks involved. Investigations into the exchange uncovered gross financial misappropriation and abuse of users’ funds. The disastrous event left many investors seething and funds lost. Related Reading: Bitcoin Drops Below $17,000 Pre-CPI And FOMC – Scenarios To Prepare For This Week According to reports, FTX had allegedly acted unprofessionally and blurred corporate lines between FTX and sister corporation Alameda. The firm supposedly had borrowed funds illicitly from the exchange and sparked an outcry for regulating crypto exchanges. The revelation led to a negative trend in the cryptocurrency market, with exchanges treading cautiously. In recent events, Sam Bankman-Fried has been arrested in the Bahamas and is facing the possibility of prosecution for fraud. SBF Arrest And Charges According to CNN reports, Sam Bankman-Fried, the founder and ex-CEO of FTX, was arrested in the Bahamas on Monday at his apartment. This arrest comes on the heels of criminal charges against him. According to U.S. attorney Damian Williams, Samuel Bankman-Fried was arrested at the request of the U.S. Government. This arrest resulted from a sealed indictment filed by the SDNY. His arrests occurred around 6 pm ET on Monday, and he will likely face a Nassau court today, as detailed by the Royal Bahamas Police force. The Security and Exchange Commission also stated it had created separate charges for SBF for violating securities laws. Charges against SBF include wire fraud, security fraud, securities fraud, and money laundering. Related Reading: Upcoming FOMC Meeting Is The Most Important Ever For Bitcoin – Watch Out For The Dot Plot SBF faces the possibility of extradition to face his charges. According to the United States extradition treaty with the Bahamas, U.S. prosecutors can return defendants to American soil. The condition for the extradition is that the offense must be considered punishable by at least one-year imprisonment in both countries. SBF was to appear before the House Committee today to shed light on recent events. However, due to his arrest on Monday, the new CEO of FTX – John J. Ray III, will reveal his findings to the House. What’s Next For FTX Token Holders? The FTT token lost most of its value in the heat of the FTX saga that saw investors liquidate positions in droves. It is now unclear if investors will truly get compensation for their losses. The token price has plummeted, with the SBF arrest set to unfold another chapter in this saga. The former CEO might face prosecution and possible jail time.

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Huobi Backed Firm Fails To Withdraw Nearly $18 Million From FTX Exchange

Burning flames from the FTX collapse continue as damages spread throughout the crypto market and industry. FTX is left to themselves as other firms cannot assist due to the magnitude of debts incurred by the exchange. Binance initially intended to help but later acknowledged that the situation was beyond its power. Meanwhile, the latest reports have revealed that the embattled crypto firm has filed for Chapter 11 Bankruptcy. The FTX crisis has plunged many crypto firms into debt and losses, including Huobi’s subsidiary, Hbit Limited. Related Reading: Bitcoin Shows Strength As Price Holds Above $16,500; Is This A Bear Trap? Hbit Limited revealed in an official announcement that it failed to withdraw $18.1 million worth of assets deposited on FTX. According to the announcement, $13.2 million out of the total value stuck on FTX belongs to Hbit’s clients. This is because the firm deposited the assets on FTX as per clients’ trading requests. The remaining $ 4.9 million belongs to Hbit Limited. However, the firm announced that it would seek legal assistance and follow the necessary steps to recover the assets from the collapsed crypto exchange. Impending Financial Crisis For Hbit According to Hbit’s announcement, the issue may negatively impact its financial performance if not resolved accordingly. However, it revealed that the incident does not affect other business operations of Huobi Group since Hbit is a separate entity. Therefore, different lines of business of the group will continue their everyday operations. Contagion fears from the FTX collapse have spread to other crypto exchanges as the majority are experiencing increased selling pressure. Crypto.Com is one of the crypto exchanges facing such challenges. CRO, the native token of Crypto.com, is down by 45% after suffering a massive sell-off since the FTX fiasco. It started with rumors that the crypto exchange might be a victim of the ongoing liquidity crunch. But the CEO of Crypto.Com, Kris Marszalek, dismissed the rumors, claiming they recovered $990 million from FTX. Marszalek assured users that Crypto.Com maintains a strong balance sheet. He added that his firm’s exposure to the newly collapsed exchange is at most $10 million. Update On The FTX Crisis According to the FTX bankruptcy filing, the exchange valued its assets between $10 and $50 billion. It also listed over 130 affiliate companies around the world. Many affiliated companies joined in the bankruptcy filing in Delaware on Friday. The FTX crisis brought a sudden turn of events for Sam Bankman-Fried, who helped some crypto firms out of their financial trouble earlier this year. Meanwhile, on Saturday, FTX confirmed that there was an unauthorized access to its accounts a few hours after the bankruptcy filing. Related Reading: XRP Price Rallies 15%, Why Ripple Could Outperform Bitcoin and Ethereum The news stirred reactions about whether the exchange got hacked or an insider stole the funds. While the amount of money involved remains to be determined, analytics firm Elliptic estimated that $477 million is missing from the exchange. Meanwhile, FTT has lost 97.19% of its valuation since the crisis and is now trading at $1.804. Featured image from Pixabay, chart from TradingView.com

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FTX (FTT) Token Flashes Buy Ahead Of A Rally, Will $35 Be Reclaimed

The FTX (FTT) token has had a difficult time, but it has recently flashed a buy signal, indicating that the price is poised to rise against tether (USDT). The crypto market’s early week saw altcoin prices surge as most coins rallied with significant price gains, with the FTX (FTT) token poised to make a relief bounce. (Data from Binance) Related Reading: Bitcoin Price This Tad Close To Reclaim $23,000 – Will It Hit The Target? FTX (FTT) Token Price Analysis On The Weekly Chart  The price of FTX has struggled to maintain its bullish momentum in recent months, as it was rejected from the $54 area, acting as a supply zone for most sellers. Despite being a fundamentally strong coin of the FTX exchange and growing sentiment on its movement, FTT has struggled to recapture the bullish momentum it experienced. Nonetheless, FTT has reached a weekly low of $24. The price of FTT on the weekly chart needs to break out with good volume for the price to have a good chance of trading higher. FTT must break and hold above the resistance at $30 to form a support for the price of FTT to move to a higher height, as the $30 mark is preventing FTT from trending higher. If the price of FTT fails to break through this resistance region, we may see the price retest the lower weekly region of $24, which could act as a good buy zone to push the price of FTT higher and hold the sell-off. Weekly resistance for the price of FTT – $30. Weekly support for the price of FTT – $24. Price Analysis Of FTT On The Daily (1D) Chart The daily timeframe for FTT prices appears choppy, as prices remain range-bound with little volume to break out of this range. The price of FTT failed to hold its major support at $30 as the price flipped into resistance, causing a free fall to a region of $24, where it formed new support acting as a demand zone. After hitting a low of $24, the price of FTT rebounded, acting as strong support. The price of FTT attempted to hold above the 50 Exponential Moving Average (EMA) but was rejected as support. FTT’s price is being held back by the price of $28, which corresponds to the 50 EMA value. On the daily timeframe, FTT is currently trading at $26, having been rejected below the 50 EMA. To assume a strong bullish price movement, the price of FTT must cross the 50-day moving average. On the daily chart, the Relative Strength Index (RSI) for FTT is below 50, indicating low buy order volume. With sufficient order volume, the price of FTT could reclaim the 50 EMA, which serves as price resistance. Daily resistance for the FTT price – $30. Daily support for the FTT price – $24. Related Reading: Glassnode: Bitcoin Is Yet To See This Historic Late-Bear Crossover Featured Image From zipmex, Charts From

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FTT Crashes 30% As FTX Relaunch Hopes Fade: Is the Dream Over?

The dream of a revived FTX exchange evaporates, triggering a massive sell-off of its native token, FTT. According to Kaiko, on February 5, FTT, the now utility-free currency of the defunct exchange, plummeted over 30% last week, erasing much of its recent gains fueled by speculation of an FTX comeback.  FTT price collapse | Source: [...]

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FTT Tokens Surges 45% As Crypto Exchange FTX Explores Reboot

Failed crypto exchange FTX’s native token, FTT, is expiring upside volatility, recording important profits over today’s trading session. The token is reacting to the news of FTX’s potential relaunch. As of this writing, FTT is trading north of $2 for the first time since February and could continue to reclaim previously lost territory. The token [...]

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FTX Provides Details On $16 Billion Distribution Timeline For Customers And Creditors

The long-awaited resolution for nearly $16 billion in funds owed to users and customers of the defunct crypto exchange FTX is approaching, as the estate managing the recovery process has outlined the next steps and timeline for distribution.  FTX Nears Completion Of Chapter 11 Plan In Thursday’s announcement, FTX confirmed that it is nearing the completion of the final prerequisites necessary for its Court-approved Chapter 11 Plan of Reorganization to take effect, marking a significant milestone toward initiating creditor and customer distributions. John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors, expressed optimism about the upcoming distributions, saying that they will begin distributing proceeds in “early 2025”. Ray emphasized that the timeline reflects the diligent efforts of the team working on behalf of FTX’s creditors and customers, who have reportedly recovered billions of dollars to date. He reassured stakeholders that the team is committed to maximizing recoveries and is actively working to finalize arrangements with distribution agents to expedite the return of funds. Related Reading: Bitcoin Price Almost Hits $98,000: Key Reasons Behind The Rally FTX provided updates on the anticipated timeline for these distributions. In early December, the estate expects to finalize agreements with specialized distribution agents tasked with facilitating the global distribution of recoveries to customers in supported jurisdictions.  At that time, FTX will provide detailed instructions for affected customers on how to establish an approved account with these agents through the existing customer portal. What Customers Must Know By the end of December, FTX plans to announce the exact effective date for the distributions, contingent upon a Court Order that will approve the Disputed Claims Reserve Amounta necessary step outlined in the Confirmation Order. The current expectation is for the Plan to be effective in early January 2025.  Following this, the first distribution will be made to holders of allowed claims in the Plan’s Convenience Classes within 60 days. Importantly, the distribution record date will coincide with the effective date, meaning customers will need to be prepared to act swiftly. For customers to qualify for the initial distribution, they must establish an approved account with a distribution agent and complete Know Your Customer (KYC) verification, along with submitting the required tax forms before the distribution record date.  Additionally, claims traders should be aware of specific provisions in the Plan regarding trades made within 45 days prior to the distribution record date.  Claims traded during this period may not be reflected on the claims register by the end of business on the distribution record date, which could result in distributions being made to the original claim holders rather than the current traders. FTT Price Reacts To Distribution Announcement At the time of writing, FTX’s native token, FTT, is trading at $2.36, reflecting a substantial surge of nearly 10% within the past 24 hours.  Over a longer time frame, the token has posted impressive gains, rising around 40% over the past fourteen days and 18% over the past thirty days, in line with the broader market rally following President-elect Donald Trump’s victory on 5 November. Related Reading: Whale Alert: $2 Million PEPE Purchase Sees 105 Billion Tokens Snapped Up Data from CoinGecko further indicates that FTT has experienced a significant rise in trading volume over the past 48 hours, which has surged by 38%, resulting in over $135 million traded during this period. However, it is important to note that FTT’s current price remains significantly below its all-time high of $84, reached during the bull market of September 2021, marking a decline of over 97% from its peak value. Featured image from DALL-E, chart from TradingView.com

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IRS Asserts First Dibs On FTX Bankruptcy Payout To Recover $44 Billion In Taxes

The US Internal Revenue Service (IRS) has filed tax claims in the FTX bankruptcy as the defunct exchange’s creditors seek fund reimbursement. This recent report shows the IRS filed dues of $44 billion in taxes associated with FTX and its subsidiaries. The disclosure revealed the agency filed the tax bill under administrative claims, prioritizing them over [...]

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FTX Bankruptcy Plan Approved: $16 Billion In Assets To Be Repaid, FTT Price Soars 20%

A US bankruptcy court has officially approved crypto exchange FTX liquidation plan, paving the way for it to repay customers using $16 billion in recovered assets, according to Reuters, which reports that the ruling was made by Judge John Dorsey during a court hearing in Wilmington, Delaware, on Monday. Court Approves FTX Settlements The approved plan includes a series of settlements with FTX customers, creditors, US government agencies, and liquidators tasked with managing the companys operations outside the United States.  Related Reading: Heres Where We Are In The Bitcoin Bull Cycle According To The Wall Street Cheat Sheet These settlements prioritize the repayment of customers before addressing claims from government regulators, allowing FTX to utilize its assets effectively in the repayment process. Under the approved plan, FTX customers will receive at least 118% of the value of their accounts as of November 2022, the month the failed crypto exchange filed for bankruptcy. Customer Reactions Remain Mixed According to Reuters, FTX has characterized this outcome as a triumph for its creditors, attributing it to the successful recovery of cash and crypto assets that had initially gone missing amid the chaos surrounding the companys collapse.  Additionally, FTX has raised further funds by liquidating other assets, including its investments in various technology firms, such as the artificial intelligence (AI) startup Anthropic. Related Reading: Dogecoin Analyst Expects A Multi-Year Bullish Breakout 200% Surge Potential However, customer reactions to the repayment plan have been mixed. Many former users of the exchange have expressed disappointment, feeling that the collapse of FTX prevented them from taking advantage of a significant rebound in cryptocurrency prices since the market hit its lowest point in 2022. Some customers have voiced objections to the plan, arguing for higher repayments that reflect the recent increases in crypto values. FTX has maintained that it cannot simply return the cryptocurrency assets originally deposited by customers, as those assets were misappropriated by founder Sam Bankman-Fried.  Bankman-Fried, who was sentenced to 25 years in prison in March for defrauding FTX customers, has since appealed his conviction, further complicating the aftermath of the exchanges failure. At the time of writing, the exchange’s native token, FTT, has jumped 20% to the $3 mark for the first time in nearly 8 months amid the first quarter of the year’s uptrend.  CoinGecko data also shows that FTT has seen a notable 176% increase in trading volume in the last few hours, but is still down nearly 97% from its all-time high of $84, reached in September 2021.  Featured image from DALL-E, chart from TradingView.com

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FTX Bankruptcy: Key Dates For The $16 Billion Payout And Potential Market Effects

On Monday, a US bankruptcy court officially approved the liquidation plan for cryptocurrency exchange FTX, allowing the company to repay its customers using approximately $16 billion in recovered assets.  This decision comes at a critical time for the crypto market, as creditors are poised to receive more than $12 billion through the court-sanctioned payout plan, [...]

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