FTX Token Jumps 20% After SBF’s Cryptic X Message

The FTX Token (FTT) jumped 20% in value following a simple “gm” message that appeared on Sam Bankman-Fried’s official X account. This was SBF’s first public message in months and excited traders, even though he is serving a 25-year prison sentence for fraud.

The surge raised FTT’s price from under $1 to about $1.10, with trading volume increasing from $10 million to $59 million in just a few hours, according to CoinGecko data. 

Cryptic Post Ignites Speculation

Bankman-Fried, convicted in 2023 for defrauding FTX customers of $11 billion, remains a highly controversial figure in the crypto industry. His erstwhile dormant X account has seen increased activity in recent times, sparking speculation about potential hidden actions, as it appears to violate the rules against social media use by federal inmates.

However, shortly after the cryptic “gm” message, the X handle, managed by a friend, retweeted, [No, SBF is not posting himself from prison. I’m a friend posting on his behalf.]

Earlier in September, a similar unusual activity on SBF’s X handle @SBF_FTX led to a 22% spike in FTT. The account followed many users, attracting thousands of new followers in a matter of hours. FTT currently trades about 99% lower than its peak of $84.18 in 2021. Although there is no official proof connecting SBF to these activities, they show his lasting impact on market feelings.

FTX Moves to Ease Woes

In a recent report, FTX’s Recovery Trust announced on September 20 that it will start its third round of payouts. On September 30, it will distribute $1.6 billion to verified customers and unsecured claimants. Claimants who have completed the KYC process through the FTX portal will receive funds via BitGo, Kraken, and Payoneer, bringing the total recoveries to over $8 billion. This follows $6.2 billion in earlier payments.

Most creditors, approximately 98%, are expected to recover 119% of their claims from 2022, plus 9% interest based on past asset values. However, there have been delays in paying $470 million to claimants from countries such as China and Russia, which have restrictions.

Meanwhile, as these payments were being made, the Trust filed a $1.15 billion lawsuit against Genesis Digital Assets on September 23. The lawsuit claims that Genesis illegally transferred customer funds using Alameda Research from 2021 to 2022. It targets the co-founders of Genesis, who allegedly made $550 million from inflated deals, and seeks to recover assets for affected customers.