SBF Supports Restarting FTX and Issuing New FTT Token to Creditors
Sam Bankman-Fried supported the idea of restarting FTX and issuing new FTT tokens to creditors, saying it would be “a productive path for parties to explore.” The idea was first voiced by Crypto Trader host Ran Neuner in a tweet released earlier today.
SBF Says Launching New FTT Token Would Be a “Productive Path” to Explore
Crypto Trader host Ran Neuner said in a tweet Friday that the fallen FTX exchange should restart operations and issue a new FTT token, distribute it to creditors and accrue all profits to token holders. Further, Neuner wrote the relaunched FTX would be “the biggest exchange in the world and users will be made more than whole.”
More interestingly, FTX co-founder and former CEO Sam Bankman-Fried backed Neuner’s idea in the comment section.
“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.”– Sam Bankman-Fried said in a tweet.
But the billionaire barely received any support in the comments. “Let’s fix fraud with more fraud,” was one of the replies to SBF’s tweet. Other Twitter users said the move would be nothing more than a Ponzi scheme, while some argued that SBF should be in jail instead of exploring new FTX ideas.
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SBF Refuses to Appear Before Congress Until He’s Done “Reviewing What Happened”
FTT is a native FTX token at the center of the exchange’s demise. Just a few weeks before the bankruptcy, it was revealed that the FTT token significantly inflated the balance sheet of Alameda Research, a crypto trading firm also founded by SBF.
Following the revelations, FTX rival Binance announced the selling all of its FTT holdings. This, along with concerns over FTX’s financial health, triggered massive withdrawals and a liquidity crunch at SBF’s crypto empire.
Binance then offered to buy FTX in a rescue deal, but the world’s largest crypto exchange quickly scrapped those plans, citing severe financial issues at FTX. The embattled crypto bourse failed to mitigate the damage and declared bankruptcy on Nov. 11. Later, it was revealed that FTX loaned $10 billion to Alameda Research to cover its liabilities.
SBF is slated to testify before the US Congress on Dec. 13. Still, the crypto entrepreneur said in a tweet earlier this month that he will not appear before the committee until he is “finished learning and reviewing what happened.” The crypto entrepreneur got slammed in the comments for his remarks, with one of the popular crypto accounts calling SBF a “democrat rat” who stole $8 billion from FTX users and still hasn’t faced any consequences.
What do you think about SBF supporting the idea of restarting FTX and launching a new FTT token? Let us know in the comments below.