FTT up 65% after SEC’s Gensler hints FTX restart

FTT, the native token of the bankrupt FTX cryptocurrency exchange, rose over 65% on Thursday, after U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler said that he is open to the idea of restarting the exchange.

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Fast Facts 

• FTT rose 65% in the 24 hours leading up to 10:13 p.m. in Hong Kong, to US$2.12, according to CoinMarketCap.

• The price rally occurred a day after Gensler hinted that he is open to the potential reboot of FTX by Tom Farley, as long as it is done “within the law.” Farley is a former president of the New York Stock Exchange who is among the three top bidders for the bankrupt exchange.

• “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,” Gensler told CNBC at the DC Fintech Week on Wednesday.

• FTX founder Sam Bankman-Fried was found guilty of seven counts of fraud and conspiracy last Thursday. He faces up to 115 years in prison and his sentencing hearing is scheduled for March 28, 2024

• FTX filed for bankruptcy with 130 of its affiliates nearly a year ago on Nov. 11, as it was unable to honor customer withdrawals amid a bank run-style collapse due to misappropriation of customer deposits. 

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