FTX has announced of plans to revive the exchange after the apparent discovery of $7.3 billion in missing funds, raising doubts among the crypto community regarding the legitimacy of the plans.
In November 2022, FTX rumors of insolvency were proven true, leading to the collapse of the FTT token, and user accounts being frozen.
The mismanagement of users’ funds, particularly regarding intercompany transactions, was at the heart of the matter. The exchange had lent $10 billion of users’ funds to sister company Alameda Research, who subsequently squandered the money through risky leveraged trades.
On April 12, a bankruptcy hearing revealed the discovery of missing funds, leading to speculation that the exchange could relaunch. The FTT token spiked 103% on the news, but the crypto community expressed skepticism over the plans.
Some crypto community members took a humorous approach, posting memes and questioning why anyone would use FTX again after their funds were previously stolen. Others speculated on the revival, with Nazeem Elkommos questioning how the discovered funds were recovered and whether they came from vested interests intent on keeping the exchange going.
Meanwhile, Max Keiser doubted whether the discovered funds exist and proposed that the entire thing is a ruse by the political class to pump the token, exit, and minimize their losses.
Despite the skepticism, the FTT token has retained most of its gains from the $2.72 peak and was trading at $2.28 at the time of publication. The revival plans, however, still face scrutiny from the crypto community. Stay tuned to CoinNews for the next information regarding the FTX exchange and all news on the crypto universe.