FTX Token (FTT), the native token of the now-defunct FTX exchange, experienced a dramatic 60% price increase within hours early Wednesday.

The token surged after Sam Bankman-Fried’s (SBF) X account put a post.

SBF is the former CEO of FTX currently in jail.

The surge to an intraday peak of $1.21 also came as FTX Recovery Trust sued Genesis Digital for $1.15 billion.

FTX token soars amid SBF tweet

FTT price hovered over $1 on Monday and Tuesday, mirroring crypto turbulence this week.

However, it exploded well above the psychological level on Wednesday.

The catalyst for the sharp price movement appears to be a two-letter post “gm,” shorthand for “good morning”, that Sam Bankman-Fried posted on September 24, 2025.

SBF, jailed for his role in the collapse of FTX, looks to be a massive shadow looming large across the market as his post quickly garnered nearly 4 million views.

The FTT price jumped as a frenzied speculative trend picked up momentum.

Some market participants interpreted it as a signal of potential developments in FTX’s bankruptcy process, while others viewed it as a nostalgic nod to SBF’s influence in the crypto space.

A 60% spike to $1.21 separated FTT from the overall picture of a broader market downturn.

Prices pared gains after the X account posted again a few hours later.

[No, SBF is not posting himself from prison. I’m a friend posting on his behalf.]

— SBF (@SBF_FTX) September 24, 2025

Despite this, FTT price remained near $1 and was up 19% in the past 24 hours at the time of writing.

Notably, the price surge also came as FTX Trust sued Bitcoin mining firm Genesis Digital over a $1.15  billion asset investment that SBF made.

In a filing submitted Monday to the US Bankruptcy Court for the District of Delaware, the FTX Recovery Trust launched a complaint against crypto mining firm Genesis Digital Assets (GDA), its affiliates, and two of its co-founders.

The action is part of efforts to reclaim $1.15 billion in what it described as “commingled and misappropriated funds.”

The filing alleges that the funds are directly connected to former FTX chief Sam Bankman-Fried’s “fraud on customers and other creditors” during 2021 and 2022.

What’s the FTT price outlook?

FTT’s price currently stands at $0.9704, with a 24-hour trading volume of approximately $17.64 million.

The token’s market capitalization is reported at $272.9 million, reflecting a circulating supply of 328.89 million FTT.

The token’s long-term viability remains questionable, as it no longer serves a functional role and may face liquidation to settle creditor claims in FTX’s ongoing bankruptcy proceedings, set to distribute $1.6 billion.

FTT could breach $1.21 again and target $2 amid overall volatile trajectory for altcoins.

But the token’s historical high of $85.02 contrasts starkly with its current levels.

The FTX Token is down 98.8% since its all-time peak, with the bearish outlook tied to its turbulent past.

The post FTX Token soars after jailed former CEO Bankman-Fried’s post on X appeared first on CoinJournal.

FTX Token soars after jailed former CEO Bankman-Fried’s post on X

Source: https://coinjournal.net/news/ftx-token-soars-after-jailed-former-ceo-bankman-frieds-post-on-x/

The legal fallout from the spectacular collapse of cryptocurrency exchange FTX has now zeroed in on the Fenwick & West law firm.

Plaintiffs in a massive class action are accusing Silicon Valley-based law firm of being far more than a bystander in the $8 billion fraud that brought down Sam Bankman-Fried’s empire.

The plaintiffs allege that the prestigious firm not only knew about FTX’s misconduct but also actively shaped the structures that made it possible.

Spotlight on the Fenwick & West law firm

The class action, filed on Monday, is part of a multi-district litigation involving more than 130 firms linked to FTX, and it singles out Fenwick & West as the only one accused of knowingly participating in the fraud.

Plaintiffs say new evidence from Bankman-Fried’s criminal trial and the bankruptcy investigation reveals the firm played a “key and crucial” role in the exchange’s operations.

According to them, FTX’s massive misappropriation of customer funds could not have happened without Fenwick’s “substantial assistance.”

Court filings claim the firm designed corporate entities with no safeguards, enabling FTX to divert billions in customer assets to its sister trading firm Alameda Research.

Among the most controversial allegations is that Fenwick set up shell companies such as North Dimension to obscure transactions, drafted backdated agreements to justify illicit transfers, and approved intercompany loans secured by customer funds.

Claims of concealment and obstruction

Prosecutors and bankruptcy examiners have accused FTX executives of using disappearing messages on Signal to cover their tracks.

Plaintiffs now allege that Fenwick itself authored the encrypted communications policy that allowed those messages to vanish.

The firm is also accused of creating auto-deleting chat channels for executives and engaging in other practices that regulators later described as obstruction.

Nishad Singh, FTX’s former engineering director, testified that he personally informed Fenwick about the misuse of customer funds and false disclosures. He claims the firm responded not with warnings but with guidance on how to hide the wrongdoing.

Similar testimony from former Alameda CEO Caroline Ellison and co-founder Gary Wang supported the narrative that Fenwick was aware of the diversion of funds to cover Alameda’s losses.

Examiner’s findings raise the stakes

The independent examiner in the FTX bankruptcy case reviewed more than 200,000 documents, many directly related to the Fenwick & West law firm.

The examiner’s report concluded the firm was “deeply intertwined” in nearly every aspect of FTX’s misconduct. It also described “exceptionally close relationships” between Fenwick’s lawyers and FTX insiders, alongside evidence of the firm facilitating conflicted transactions that misused customer assets.

These findings have intensified scrutiny on the firm’s role in promoting FTX’s credibility to investors.

Plaintiffs argue Fenwick’s Silicon Valley reputation helped the exchange raise more than $1.3 billion from venture capitalists, despite internal knowledge of insolvency risks.

The amended complaint also adds state securities law claims in Florida and California, accusing Fenwick of promoting and facilitating unregistered sales of FTT tokens and yield-bearing accounts.

Fenwick & West denies wrongdoing

The Fenwick & West law firm has consistently denied all allegations, insisting it acted within the scope of its legal representation.

In its 2023 motion to dismiss, the firm argued that attorneys cannot be held liable for a client’s misconduct when their actions fall within their professional role.

The court has yet to rule on Fenwick’s latest bid to have the claims thrown out, and a request from plaintiffs to amend their complaint with fresh evidence is pending before US District Judge K. Michael Moore in Miami.

As the litigation unfolds, the case is being watched closely by the legal and crypto industries alike.

A ruling against the Fenwick & West law firm could set a precedent for attorney liability in the digital asset space, reshaping how law firms approach high-risk clients.

For FTX’s creditors, the outcome could influence how much more, if anything, can be recovered from the wreckage of one of the largest financial collapses in US history.

The post Fenwick and West law firm sued over alleged role in FTX’s multibillion-dollar theft appeared first on CoinJournal.

Fenwick and West law firm sued over alleged role in FTX’s multibillion-dollar theft

Source: https://coinjournal.net/news/fenwick-and-west-law-firm-sued-over-alleged-role-in-ftxs-multibillion-dollar-theft/

The FTX Token (FTT), the native cryptocurrency of the now-defunct crypto exchange FTX, is up 2.8% in the last 24 hours to trade above $1.24.

While not huge, the gains continue FTT token’s uptick from lows of $1.12 hit earlier in the week.

This comes as the FTX holder community eyes fresh momentum amid the impending $5 billion second phase of bankruptcy distributions.

But what does this initiative that starts on May 30, 2025 mean for FTX Token?

FTX Token recent price action

Over the past month, FTT has seen a notable 32% surge, driven by speculation around the FTX bankruptcy estate’s upcoming distributions.

However, the token has faced downward pressure in the past week, dropping to around $1.12 before rising to $1.24 in the last 24 hours.

The downturn threatened to stall the altcoin’s bullish momentum, with the pullback coming amid broader market struggles.

After initially spiking on the bankruptcy estate’s plan to distribute over $5 billion to creditors starting May 30, 2025, the token dropped again.

Now that the payouts, which will range from 54% to 120% of original claims, are about to commence, activity around FTT is rising.

Per CoinMarketCap data, daily volume has jumped 21% in the past 24 hours to reach $26.7 million.

FTX distributions and potential price movement

The FTX bankruptcy estate’s plan to distribute over $5 billion to creditors marks a significant milestone in the exchange’s recovery process.

As CoinJournal highlighted earlier, the anticipation of the announced payouts fueled a 14% surge in FTT’s price.

Some investors see the repayments as positive news that could further bolster market confidence in FTT.

It’s still possible FTX’s collapse in November 2022 continues to constrain FTT, which has plummeted to below $1 since the crypto exchange imploded.

But the token, which peaked at $85 in September 2021, has shown resilience in recent months.

🚨TOMORROW :

FTX will begin distributing $5B in stablecoins to creditors starting May 30th.

Creditors are getting their funds paid in stables, so expect potential huge inflows of capital to pour into the crypto markets throughout the weekend📈

Also keep an eye on $FTT (FTX… pic.twitter.com/HVW9k63ca3

— Bitcoinsensus (@Bitcoinsensus) May 29, 2025

While FTT has largely traded below $2, occasional spikes have driven it higher. Notable news around bankruptcy updates have provided most of this upward movement.

Also, a February 2025 post from incarcerated former CEO Sam Bankman-Fried triggered a brief 30% rally, pushing FTT to $2.34 before it retreated.

This downturn was brutal though,with FTX token hitting lows of $0.78 in early April 2025.

Bears might yet target further pain, but ongoing speculation around creditor repayments, and broader market sentiment could be huge catalysts for the altcoin.

The post FTT posts slight gains as FTX prepares $5B in distributions appeared first on CoinJournal.

FTT posts slight gains as FTX prepares $5B in distributions

Source: https://coinjournal.net/news/ftt-posts-slight-gains-as-ftx-prepares-5b-in-distributions/

The FTX Token (FTT) rose sharply as the crypto market reacted to an announcement that FTX, which filed for bankruptcy in November 2022, will soon commence the second phase of its creditor payments.

As top coins looked to bounce after paring gains earlier in the day, FTT price spiked 14% to break to highs of $1.33.

The gains came as FTX announced that the $5 billion distribution to creditors will start on May 30, 2025.

Optimism around FTX’s Chapter 11 reorganization plan has helped FTT recover from lows seen when FTX imploded.

FTX set to commence $5 billion creditor distribution

The FTX team, led by administrator John J Ray III, has announced the crypto exchange’s second creditor distribution.

An update on May 15 revealed that funds for allowed claims of eligible holders will start flowing into accounts on May 30, 2025.

FTX will distribute over $5 billion to holders of allowed claims, both in its Convenience and Non-Convenience Classes.

According to FTX, eligible creditors are those that have completed pre-distribution requirements.

These users should also have onboarded with the selected distribution service providers, BitGo or Kraken.

If all is in order, creditors should receive their share of the $5 billion from the platforms within 1 to 3 business days.

John J.Ray III, FTX Recovery Trust plan administrator, said:

“These first non-convenience class distributions are an important milestone for FTX. The scope and magnitude of the FTX creditor base make this an unprecedented distribution process, and today’s announcement reflects the outstanding success of the recovery and coordination efforts of our team of professionals. Our focus remains on recovering more for creditors and resolving outstanding claims.”

FTX Token price soars

In November 2022, the FTX Token (FTT) experienced a massive sell-off, with the price plummeting to under $1 from above $25.

Since then, the token has struggled to break higher.

Despite this, data from CoinMarketCap shows FTT price spiking by more than 70% since touching an all-time low of $0.75 on April 17, 2025.

On May 15, the native FTX token rose by more than 14% to top the daily gainers list.

While it has shed some of the upside momentum, FTX Token remains above the psychological $1 level.

A 24-hour trading volume of $69 million represents a 271% surge, while market cap stands at over $416 million to see FTT rank as the 141st largest cryptocurrency by this measure.

The post FTX Token surges 14% ahead of $5B creditor distribution appeared first on CoinJournal.

FTX Token surges 14% ahead of $5B creditor distribution

Source: https://coinjournal.net/news/ftx-token-surges-14-ahead-of-5b-creditor-distribution/