Crypto exchange FTX, which declared bankruptcy under the leadership of Sam Bankman-Fried, has announced its intention to fully reimburse its customers.

This development was revealed during a Wednesday court hearing.

According to a report by Reuters, which cited statements from the exchange's lawyers, FTX has ceased efforts to revive the platform, primarily due to the absence of potential buyers.

Following this announcement, FTX's native token FTT (CRYPTO: FTT) saw volatile trading, initially surging 11% on the news, followed by a strong retrace. It is down 15% over the last 24 hours.

Sam Bankman-Fried, the former head of FTX, was convicted last year for misappropriating customer funds before the exchange's collapse in late 2022.

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