SEC Chairman Shows Receptive Stance Towards FTX Relaunch, FTT Surges Over 50%

Amid the ongoing fallout of the bankruptcy of the cryptocurrency exchange FTX, Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), has expressed conditional support for the exchange's potential relaunch, emphasizing the importance of legal compliance.

Possibility of Restart Within Legal Framework

During an event at the Washington DC Fintech Week, SEC Chairman Gary Gensler told CNBC that a restart plan for FTX involving former NYSE Chairman or others could be possible if conducted within legal boundaries. Gensler emphasized the need for the new leadership to have a clear understanding of the law and to establish trust with investors through proper disclosure and operations to prevent improper trading using client assets.

Former NYSE Chairman Participates in Bidding

Gensler's comments were in response to recent reports, including news of former NYSE President Tom Farley participating in the bidding for FTX's bankruptcy assets. Farley launched his own digital asset exchange "Bullish" in May and became one of the main competitors in the bankruptcy auction. Gensler reminded potential buyers that any restart plan must strictly comply with legal regulations.

Bidders for FTX restart: Proof Group, Tribe Capital, and Figure

Legal Issues of FTX Founder

FTX founder SBF has been convicted of seven criminal charges including fraud and money laundering. He was accused of inappropriately transferring client funds to the sister hedge fund Alameda Research a year before applying for bankruptcy at the exchange. Gensler pointed out that just as the NYSE would not allow operating a hedge fund and trading with clients simultaneously, the relationship between FTX and Alameda should be strictly separated. Additionally, the problematic relationship between FTX and Alameda has also been criticized by industry experts and has led to civil lawsuits filed by the SEC and the Commodity Futures Trading Commission.

FTT Surges Over 50%

FTT saw a one-day surge of over 50%, reaching $1.8 before the deadline.