FTX Token FTT Soared 100% in the Last Two Weeks as Investors Awaited Bankruptcy Plan Confirmation Hearing

FTX's native token, FTT, soared over 50% to $3.23 on Monday after FTX received court approval for its bankruptcy plan.

FTX’s native token FTT surged over 50% on Monday after a US court approved the bankrupt crypto exchange’s plan to repay customers in full.

FTT soared over 50% to $3.23 on Monday, continuing its recent rally. After the surge, FTT is now trading at around $2.72, CoinGecko data shows. The token’s value rose 100% in the last two weeks as investors awaited the confirmation hearing.

On Monday, Judge John Dorsey in the US Bankruptcy Court for the District of Delaware confirmed FTX’s Chapter 11 Plan of Reorganization. Nearly two years after its collapse, FTX’s bankruptcy saga is nearing its conclusion.

However, Dorsey also noted that the value of FTX’s native token is zero, highlighting the exchange’s current inability to revive.

“I have no evidence today that the value of FTT tokens would be anything other than zero,” said Judge Dorsey.

FTX filed for Chapter 11 bankruptcy protection in November 2022 after a liquidity crisis wiped out billions of dollars in customer funds. The exchange’s founder and former CEO, Sam Bankman-Fried, was arrested and charged with multiple counts of fraud.

The plan, filed in March, will see 98% of creditors receive approximately 119% of their approved claims within 60 days after the plan takes effect. The decision follows a favorable vote by 94% of creditors, representing approximately $6.83 billion in claims.

The total recovered funds are estimated to be between $14.7 billion and $16.5 billion. The money includes the liquidation of assets from FTX itself, international branches, government agencies, and collaborating parties.

“Today’s achievement is only possible because of the experience and tireless work of the team of professionals supporting this case, who have recovered billions of dollars by rebuilding FTX’s books from the ground up and from there marshaling assets from around the globe,” said John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of FTX. “It also reflects the strong collaboration we have had with governments and agencies from around the world that share our goal of mitigating the wrongdoings of the FTX insiders.”

The exact date of the plan’s implementation is not specified. Ray III said funds will be distributed to creditors across over 200 jurisdictions and the estate is working with specialized agents to ensure safe and efficient delivery.

Despite some opposition regarding payment methods, the plan will proceed with cash distributions, as confirmed during Monday’s court session. With today’s court approval, it is expected that FTX customers will receive repayments of their losses in the coming months.

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