• Sam Bankman-Fried confirmed that there is still potential for FTX to recover and return funds to customers.
• Selling FTX as a functioning business is the best recovery scenario for customers.
• The bullish sentiment toward an FTX recovery appears to be playing out in the price of the FTX token, FTT, which is up 45% over the past 48 hours.
Sam Bankman-Fried, the founder of FTX, recently confirmed that he still believes there is a future for FTX in a tweet. In his tweet, he agreed with Twitter user WassieLawyer who said that a sale of the FTX exchange as a going concern is viable and they were “bullish on recovery” in relation to FTX. Bankman-Fried said that this is and always has been the best recovery scenario for customers. He also referenced the ongoing argument that FTX.US should be able to return funds to customers as it was allegedly solvent at the time of the Chapter 11 filing.
FTX.US was absorbed into the bankruptcy proceedings of the FTX group despite Sam Bankman-Fried’s claims that the platform was solvent and should not have been included in the insolvency proceedings. The recovery potential of FTX appears to be playing out in the price of the FTX token, FTT, which has nearly doubled, while Bitcoin is up roughly 11% in 2023. Attorneys working on the FTX bankruptcy recently confirmed that $5 billion had been recovered.
However, the only entities that can receive payments from FTX are those involved in the bankruptcy proceedings. This means that customers of FTX are still unable to recoup their funds, but the positive sentiment surrounding the potential for recovery is a good sign for the future. The possibility of a full recovery for FTX customers is something that Bankman-Fried and the FTX team are hoping for, and it is something that investors are optimistic about as well.
If the FTX team is successful in selling the exchange as a going concern and returning funds to customers, it could be a huge win for the crypto community. This would show that even in the face of bankruptcy, a company can still make a comeback and prove that crypto assets are a viable investment option. It would also prove that the crypto industry is resilient and can bounce back from adversity.
Only time will tell if FTX is able to recover and return funds to customers, but the bullish sentiment and potential for recovery is something that investors should keep an eye on.