FTT Surges 45% After SBF's Mysterious Tweet

FTT, the native cryptocurrency of the now-defunct FTX crypto exchange, experienced a significant surge earlier on Tuesday, rising around 45% in less than two hours to reach $2.25. This sudden spike followed Sam Bankman-Fried's first tweet in two years, which sparked renewed interest in FTX-related assets.

Bankman-Fried, the embattled former CEO of FTX, currently serving a 25-year prison sentence for fraud, broke his social media silence late Monday to comment on recent mass layoffs within the U.S. government. In his tweet, he expressed sympathy for government employees and shared his own experience with unemployment. He also addressed workplace dynamics, stating that firing people is one of the hardest things to do and that it is usually not the employee's fault when they are let go.

The tweet ignited speculation across the crypto community, with traders betting on FTX's bankruptcy case developments. However, skepticism quickly followed, as Bankman-Fried remains in Brooklyn's Metropolitan Detention Center, where direct social media access is prohibited. Some users questioned how his account could be posting tweets, while others speculated that his lawyers or close associates may have relayed the messages through the Corrlinks system, which allows federal prisoners to communicate externally.

Just days before this tweet, SBF reiterated in an interview with The New York Sun that FTX was solvent but illiquid at the time of its collapse. He claimed that there were enough assets to pay off all clients, but the liquidity crisis caused panic in the market, making it impossible to quickly cash out funds. His first interview from prison coincides with FTX beginning to reimburse customers what it claims is the full amount they lost. However, compensation is based on cryptocurrency prices at the time of FTX's 2022 collapse, sparking criticism from victims.

SBF further insisted that he has evidence proving he did not misappropriate billions in user funds and that the cash was available. Notably, the disgraced FTX founder also appealed to former U.S. President Donald Trump for clemency, claiming that his prosecution was politically motivated by pressure from the Biden administration.