The FTT token surged remarkably following a tweet from Sam Bankman-Fried’s X account. This led to speculation about who might be running the account, given that the FTX founder is in prison.
FTT Surges After Unlikely Tweet
The FTT token spiked nearly 60% within minutes after a simple “gm” appeared on Sam Bankman-Fried’s account. The token reached an intraday peak near $1.23, a 30% increase. The altcoin then eased back toward $0.98 as traders locked in their gains.
Source: TradingView; FTT Daily Chart
Despite the pullback, FTT is still up about 20%. This extends its weekly advance to around 23%, marking an almost 12% gain over the past month.
The timing of the tweet caused a stir because federal inmates in the United States are not permitted direct access to social media. A follow-up reply clarified that the message was posted by a friend managing the account on Bankman-Fried’s behalf.
The price jump also coincided with a sharp rise in activity. Daily trading volumes for the token surged 670% to $69.9 million. Derivatives markets are also heating up. According to Coinglass data, open interest in FTT futures increased by 37% to $3.58 million, and total derivatives volume surged 2,100% to $34 million.
Source: Coinglass
Analysts caution that such rapid inflows suggest highly leveraged speculation. This could lead to sharp swings in either direction. However, the surge underscored how closely tied the token remains to headlines surrounding its former founder.
Tweets from Prison: Sam Bankman-Fried’s Limited Communication
Since April, Sam Bankman-Fried has been housed at the Federal Correctional Institution Terminal Island in Los Angeles. This followed an 18-month stay at the Metropolitan Detention Center in Brooklyn. Inmates are permitted to use TRULINCS, a secure email-like system that restricts attachments and outside internet access.
His X account, which includes a monitored mailing address for FCI Terminal Island and notes that a friend shares access, has occasionally sprung to life with brief posts. Earlier in the year, it carried cryptic threads on responsibility and management, but activity has remained sporadic until this week’s post reignited attention.
The renewed spotlight on FTT comes as the FTX estate prepares a payout of $1.6 billion to creditors on September 30 under its Chapter 11 restructuring plan. This distribution is expected to provide fresh liquidity to the market.
Creditors with allowed claims in the plan’s Convenience and Non-Convenience Classes who have completed requirements will be eligible for repayment, according to the estate.
Meanwhile, the bankruptcy process continues to face some roadblocks. Last month, creditors filed a class-action lawsuit against Kroll Restructuring Administration over its 2023 data breach. This is the claims agent responsible for the case. Plaintiffs allege negligence in handling sensitive information across the FTX, BlockFi, and Genesis bankruptcy proceedings.
Adding to the drama, the cost of the case itself has reached high levels. Reports indicate legal and advisory fees are approaching $1 billion. This further cemented FTX’s collapse as one of the most expensive bankruptcy cases in U.S. history.
