The End of Genius Trader SBF and the Recent Logic Behind FTT's Surge

SBF Convicted of Seven Charges

On November 2nd, local time in the United States, after four and a half hours of deliberation, a 12-person jury in the Manhattan federal court reached a verdict in the case against SBF. The jury found that the prosecution's two charges of fraud and five charges of conspiracy were all valid, totaling seven accomplice charges.

Prior to the deliberation, the court had conducted a 15-day trial, summoning key witnesses such as Gary Wang, former Chief Technology Officer of FTX, Caroline Ellison, former Chief Executive Officer of Alameda Research (and SBF's ex-girlfriend), and Matt Huang, co-founder of Paradigm, one of the main investors. SBF himself underwent a three-day direct examination.

Although the jury has rendered a guilty verdict against SBF, the sentencing remains unknown. According to the current schedule, the sentencing hearing for this case is set for March 28, 2024. Given the defense's opposition both before and during the trial, it is expected that SBF's side may appeal the decision.

The Logic Behind FTT's Recent Surge

For creditors of the

FTX exchange

and speculators in the market, the legal judgment of SBF is not their primary concern. What matters most to them is how to retrieve their assets from FTX and profit from the situation.

With recent disclosures in the news:

• According to sources,

  cryptocurrency

  trading platform Bullish operated by Farley, financial technology startup Figure Technologies, and crypto venture firm Proof Group are competing to acquire FTX. The winning bidder could restart the trading platform after it exits bankruptcy proceedings next year, with decisions on how to proceed expected to be made by mid-December.

• According to information from Coindesk, Proof Group is bidding to relaunch FTX.

• Gary Gensler, the Chairman of the U.S. SEC, stated during the Washington D.C. Fintech cycle that if the new leadership of FTX has a clear understanding of the law, it is possible to restart FTX “within the legal framework.”

News from the capital and policy sides indicates a possibility of FTX being restarted, leading to a short-term price increase of over three times for FTT.



WikiBit analysts believe there is a possibility of FTX being restarted, but whether FTT will continue to be recognized as the platform token remains unknown. There are two perspectives that might explain the short-term rise in FTT:

• With FTX going bankrupt, FTT plummeted from $25 to less than $1 in an extremely short period. If FTT is recognized as the platform token after FTX restarts, the odds for significant gains are high.

• Previously, as FTX's financial situation was disclosed, most of the FTT was used by FTX as collateral, and the circulating FTT in the market was actually much less than the previously disclosed ratio. Low liquidity led to significant price fluctuations for the token.