FTX Says Sam Bankman-Fried Doesn’t Speak For It

FTX is trying to do some damage control amid a bankruptcy process that has sent shockwaves through the entire crypto industry.

In a small Twitter thread, the official FTX account spoke about their relationship with Sam Bankman-Fried after the bankruptcy. The account attributes the words to John Ray, director of restructuring and the company’s new CEO following the resignation of Sam Bankman-Fried.

(2/3) As previously announced, Mr. Bankman-Fried resigned on November 11 from @FTX_OfficialFTX US, Alameda Research Ltd. and their directly and indirectly owned subsidiaries.

—FTX (@FTX_Official) November 16, 2022

(3/3) Mr. Bankman-Fried has no permanent role in the @FTX_OfficialFTX US or Alameda Research Ltd. and do not speak on their behalf.

— FTX (@FTX_Official) November 16, 2022

Mr. Ray insisted that Sam Bankman-Fried currently has no connection with FTX, FTX US or Alameda Research Ltd. He added that SBF’s opinions are purely his own and in no way represent the official views of the company.

FTX and SBF Cut Ties

Although extremely succinct, the Twitter feed is important to the company because it is expressly intended to emphasize that responsibility for any information or value judgments made by these tweets would rest solely with SBF and not with the company in difficulty.

The thread also notes that Sam Bankman-Fried resigned on November 11, leaving his role with the FTX group of companies and their subsidiaries. By design, this implies that any opinion or action taken by Sam Bankman-Fried after that date was not taken in his capacity as a representative of the company.

FTX’s stance appears to come in reaction to a series of tweets posted by Sam Bankman-Fried, in which he gives his thoughts on the current state of the business and says he is doing everything possible to benefit FTX users. . Sam Bankman-Fried further clarifies that he works with regulators and various unidentified teams to ensure the interests of clients and then investors. The tweets were posted after his resignation.

13) My goal – my only goal – is to do well with customers.

I contribute what I can. I meet in person with regulators and work with the teams to do what we can for customers.

And after that, investors. But first, the customers.

— SBF (@SBF_FTX) November 15, 2022

As such, FTX’s position implies that if SBF seeks fundraising, financing, or a bailout of any kind, it will not be able to do so on FTX’s behalf, and if it does, it will be subject to serious legal consequences.

Sam Bankman-Fried didn’t elaborate in his tweets on what he was doing to try to fix his mistake, but in a recent interview, he assured that it was nothing planned. “I don’t know,” he told the New York Times, “I improvise. I think it’s time.

FTT tries to hold on to $1.5 support

Despite the bankruptcy proceedingsand the fact that it has lost nearly 95% of its value so far this month, FTT – the native token of FTX – is still somewhat alive, refusing to fall below $1.5.

Binance, the exchange that holds most of the token’s trading volume, closed all of its trading pairs except BUSD, its native stablecoin.

FTX’s Sam Bankman Fried and Binance’s CZ were summoned to a hearing with US regulators to explain the chain of events that led to FTX’s debacle. Cryptopotato will follow events as they unfold.