Why did FTX surge?

First of all, we need to understand the story of the fall of the 22you FTX giant.

In '22, there's little sign of the latter. Unfortunately, the activities of then-market giant FTX were largely illegal, behind-the-scenes operations run by managers. Customers' money was used to buy luxury goods and subsidize congressional candidates.

This ultimately led to the company's liquidity crisis and bankruptcy. Former FTX CEO Sam Bankman-Fried has been found guilty of all seven criminal charges brought against him.

In March, he was sentenced to nearly 25 years in prison. That's not enough, considering he faces more than 100 years in prison, or effectively life in prison

Why did he soar?

That's because FTX announced on Tuesday that they intend to provide at least 98% of creditors with at least 118% of the claims allowed in its proposed restructuring plan. They also plan to repay other creditors in full and provide additional compensation for the time value of their investments.

FTX CEO John J. Ray III said the plan was made possible because of the company's ability to return 100% of bankruptcy claims plus interest to non-governmental creditors. The restructuring plan is designed to distribute assets to FTX customers and creditors affected by the company's collapse in 2022, regardless of where their assets are located, using a centralized process. Cash available for distribution is estimated to be worth between $14.5 billion and $16.3 billion, pending U.S. Bankruptcy Court approval

There are various signs that FTX’s story will come to an end this year. It would be a relatively happy ending for the company's customers.