FTX Token (FTT), the native cryptocurrency of the bankrupt crypto exchange FTX, has seen bullish action amid looming bankruptcy distributions.
FTT surged by more than 70% to multimonth highs on Sept. 29, briefly touching $2.70 for the first time since March 2024, according to CoinGecko data.
FTT 30-day price chart. Source. CoinGecko
FTT, which traded at around $1.4 over the past month, posted a sharp spike of more than 70% in daily returns on Sept. 29. It subsequently tumbled in price, trading at roughly $2.10 at the time of writing on Sept. 30, up roughly 30% over the past 24 hours, according to data from CoinGecko.
FTT’s rally followed rumors of bankruptcy distributions
FTT’s rally came amid social media rumors alleging that the FTX bankruptcy estate would start distributing reimbursement funds to creditors and customers on Sept. 30.
However, according to the official Chapter 11 filing, the bankruptcy plan has yet to be approved. A court hearing to approve the plan is scheduled for Oct. 7.
Source: FTX creditor activist Sunil Kavuri
If the plan is approved, the FTX trustee will start paying distributions to creditors under $50,000 by the end of 2024. On the other hand, creditors with larger claims may not receive distributions until the first or second quarter of 2025.
This is a developing story, and further information will be added as it becomes available.
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