FTX Token (FTT) has once again experienced a significant drop, further extending its losses. According to CoinMarketCap data, FTT has declined by over 7% in the past 24 hours, reaching $1.18. During the same period, the trading volume of this altcoin has decreased by 29%, with only $22 million in volume.
The decline in investor sentiment surrounding FTT began with the collapse and bankruptcy filing of the cryptocurrency exchange FTX in November last year. The service token of the exchange, which reached an all-time high of $85.02 on September 9, 2021, dropped to $0.77. Today’s decline has pushed the price of the altcoin 98.56% below its all-time high.
One of the most significant factors contributing to the recent drop was the former CEO of the bankrupt crypto exchange FTX, Sam Bankman-Fried, being found guilty by a jury in the Manhattan Federal Court of electronic fraud, securities fraud, and money laundering, among other seven charges.
The jury’s decision came after weeks of trial, during which witnesses, including Bankman-Fried’s former business partners, testified against him, alleging that over $8 billion of FTX customers’ funds went missing and Bankman-Fried covered it up, defrauding FTX investors.
Regardless of the future course of the trial, the jury’s guilty verdict on seven charges confirms that Bankman-Fried will be sentenced to prison. The fact that the new management, led by John Ray III, is considering reopening the cryptocurrency exchange gives hope for FTT’s recovery.
Following the bankruptcy of the cryptocurrency exchange, over $7 billion worth of assets were recovered for individual and institutional investors. This recovery was supported by the bankruptcy court granting the exchange the right to sell certain assets in September. If the repayments proceed as planned, it could lead to the reopening of FTX and the recovery of FTT.