Bankrupt exchange FTX’s native token surges mysteriously

Core Insights - FTX's token FTT experienced a 17% surge in value despite ongoing bankruptcy proceedings and the reintroduction of unlocked tokens into circulation [1] - The token currently lacks utility, with most trading volume occurring on centralized exchanges such as Binance, Toolbit, Pionex, and Bitget [1] - FTX, once a leading global exchange, collapsed in November 2022 due to a liquidity crisis and mismanagement of customer funds, leading to a Chapter 11 bankruptcy filing [2] Company Developments - Sam Bankman-Fried, the former CEO of FTX, was sentenced to 25 years in federal prison in March 2024 for orchestrating a significant financial fraud, which involved stealing billions from customer deposits [3] - The conviction followed a high-profile trial where he was found guilty on seven counts of fraud and conspiracy, with key associates testifying against him [4] - In addition to prison time, Bankman-Fried was ordered to forfeit a $14 billion Chapter 11 reorganization plan aimed at repaying victims [4] Market Activity - FTT's price reached a high of $1.13 on September 18, 2023, before retracing, with trading over the past week fluctuating between $0.78 and $1.06 [5] - The token's all-time high was $84.18 in September 2021, indicating a nearly 99% decline from its peak value [5]