FTX 2.0 Will Pay Creditors in Cash, Eliminate FTT Token

Recently, FTX 2.0 Group announced their draft-creditor repayment plan to deal with creditor payments during bankruptcy reorganization. As part of the overhaul, the exchange will no longer issue its native cryptocurrency, the FTT token, and will instead pay out cash to customers who have legitimate claims.

Timeline of Ftx-token

In the latest development, the FTX 2.0 Group has unveiled a draft-creditor repayment plan as part of its bankruptcy restructuring process. The newly revamped exchange is planning for settling customer claims in cash while wiping out its native cryptocurrency FTT token.

Key Points: In the latest development surrounding the bankruptcy of defunct crypto exchange FTX, the company has revealed a draft creditor-repayment plan aimed at resolving its outstanding obligations, Bloomberg reported. The plan includes settling customer claims in cash and proposing the elimination of its digital token, FTT.

FTX victim, who lost over 90% of his net worth following the collapse, successfully raised $450,000 from his recently launched trading fund. Belgian resident Kasper Vendeloock recently launched Musca Capital, a new fund that trades liquid tokens.

FTT, the native token of the controversial FTX ecosystem, has been pumping lately. This recent price upswing was triggered by the launch of a customer claims portal, an online platform for customers to access their account information and submit electronic proof of claims in FTX's restructuring proceedings.

FTX Derivatives Exchange is trying to make good with all of its creditors as it showcased its launch portal to enable its users to file claims on their locked funds. The obvious beneficiary of this move is the defunct trading platform's native token FTT, which has recorded a 17.27% growth over the past 24 hours, with a current price tag of $1.65.

In an unexpected turn of events, the price of FTT, the native token of the once-leading cryptocurrency exchange FTX, has experienced a remarkable surge of over 35% within the past 24 hours. This surge follows the recent announcement of FTX's plans to reboot its exchange through a bidding process.

FTX management is actively seeking potential participants to revive the formerly defunct crypto exchange, as reported by sources knowledgeable about the situation. CEO John J. Ray III and other FTX executives have reportedly engaged in preliminary discussions with prospective investors, who could either acquire full ownership of the business or establish a joint venture.

The FTX token has jumped to a new multi-month high after John Ray, the new chief executive of FTX, said he's open to the idea of a fresh reboot for the failed crypto exchange. FTT, which has reacted higher multiple times this year on news of an FTX restart, the so-called FTX 2.

FTX token (FTT) has printed five consecutive days of upsurge as the conversation around the reboot of the bankrupt FTX derivatives exchange is now taking centerstage. At the time of writing and per data from CoinMarketCap, FTT is changing hands at a spot price of $1.75, up by 37.33% in the past 24 hours.

FTT, the native currency of FTX and its ecosystem, is up 45% when writing on June 28. This positive price action follows a report by the Wall Street Journal that the exchange's new management has started receiving proposals from parties interested in restarting the exchange.