Sam Bankman-Fried Considers Reissuing FTT to Cover Investor Losses
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
Sam Bankman-Fried, a one-time crypto tycoon, suggested that relaunching the insolvent cryptocurrency exchange FTX and giving consumers a fresh version of the FTT token could help users who have been locked out of their holdings.
The FTX “recovery proposal” was tweeted by Ran Neuner, which SBF concurred with. Neuner’s handle on Twitter, CryptomanRan, also suggested giving the new FTT coins to FTX customers. Neuner added, “Accrue 100% of revenues to token holders.”
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
A few hours later, Sam Bankman-Fried replied in favor of the notion of giving users new tokens. SBF praised the idea as a “useful path” for creditors to take into account.
Sam Bankman-Fried to Appear Before US Lawmakers for Questioning
In other news, SBF recently said that he was willing to give testimony on December 13, addressing the demise of the well-known cryptocurrency exchange before the US House Financial Services Committee.
Bankman-Fried tweeted on Friday that he would appear voluntarily after committee chairperson Representative Maxine Waters told Reuters she would seek a subpoena if he did not present himself.
In order to limit what he may say before the committee, Bankman-Fried claimed on Twitter that he does not have full access to his personal or professional data.
1) I still do not have access to much of my data — professional or personal. So there is a limit to what I will be able to say, and I won’t be as helpful as I’d like.
But as the committee still thinks it would be useful, I am willing to testify on the 13th. https://t.co/KR34BsNaG1
— SBF (@SBF_FTX) December 9, 2022
After users withdrew $6 billion from the exchange in three days, FTX filed for bankruptcy, and rival exchange Binance declined to buy the company as part of a bailout agreement.
Before its fall, FTX was the third-largest cryptocurrency exchange and handled billions of dollars in transactions. However, FTX immediately had a liquidity crisis after a CoinDesk story revealed that self-issued FTT tokens were being used as collateral for billions in loans for Alameda Research, Bankman-cryptocurrency Fried’s hedge fund.
You can purchase Lucky Block here. Buy LBLOCK
