Sam Bankman-Fried Supports Issuing New FTT Tokens To Make FTX Users Whole

Summary:

• SBF tweeted approval for a social media post suggesting restarting FTX and issuing new FTT tokens to users.
• Bankman-Fried hailed the proposal as a “productive path for parties to explore”.
• The suggestion was tweeted by Ran Neuner, a crypto influencer and coin Shiller who goes by CryptomanRan.

Fallen crypto tycoon Sam Bankman-Fried opined that restarting bankrupt crypto exchange FTX and issuing a new version of the FTT token to users could facilitate relief for users frozen out of their assets. 

Indeed, SBF agreed with a post from Ran Neuner who tweeted an FTX “recovery proposal. CryptomanRan, as Neuner is known on Crypto Twitter, also proposed distributing the new FTT tokens to FTX clients. “Accrue 100% of profits to token holders” Neuner added. 

Sam Bankman-Fried responded a few hours later with support for the idea to issue new tokens to users. SBF hailed the suggestion as a “productive path” for creditors to consider. 

I continue to think that this would be a productive path for parties to explore! I *hope* that the teams in place will do so.

— SBF (@SBF_FTX) December 9, 2022

CT Backlash

Crypto Twitter was awash with skepticism and critique for the suggestion. Ripple CTO David Schwartz pressed about funding, also noting that profits were “already allocated”. Benjamin Cowen rebutted the idea as an attempt to fix a sh*tcoin with a sh*tcoin. 

Given that you've already allocated 100% of the profits, where would the money to build such a thing come from?

— David "JoelKatz" Schwartz (@JoelKatz) December 9, 2022

Lol classic.

Just another person thinking that issuing a new shitcoin will make up for the collapse of their last shitcoin

— Benjamin Cowen (@intocryptoverse) December 9, 2022

Sam Bankman-Fried To Testify In Washington 

On Friday, SBF also tweeted to confirm an appearance before lawmakers in Washington DC. Bankman-Fried will testify before the House Committee on Financial Services on December 13, 2022. The FTX founder previously refused the request, claiming incomplete insight into how the crypto exchange crashed. 

Sam Bankman-Fried traded jabs with other crypto CeFi execs from rival companies and bankrupt entities alike. SBF and Binance Changpeng Zhao engaged in heated replies after CZ called out Kevin O’Leary for accepting $15 million to promote FTX.

You won, @cz_binance.

There's no need to lie, now, about the buyout.

We initiated conversations around buying you out, and we decided to do it because it was important for our business.

And while I was frustrated with your 'negotiation' tactics, I chose to still do it.

— SBF (@SBF_FTX) December 9, 2022

Bankman-Fried squared up with Su Zhu and Kyle Davies, the founders of collapsed crypto hedge fund Three Arrows Capital, over allegations that FTX manipulated the price of TerraUSD (UST) and contributed to Luna’s crash. 

Notably, U.S. prosecutors were investigating FTX and SBF in connection to Luna and 3AC’s collapse when this report was written.