SBF’s Ghost in the Machine: FTT Token Takes Flight

A brief, two-letter message, “gm” (crypto slang for “good morning”), appeared on the X account of Sam Bankman-Fried on Tuesday evening, sparking intrigue throughout the crypto community.

This seemingly innocent post ignited immediate discussion due to the strict regulations regarding internet access for inmates in U.S. federal prisons.

Following initial reports, a subsequent post clarified that Bankman-Fried was not personally responsible for the tweet. A friend is managing the account on his behalf.

Currently, the price of FTT, the token once central to the FTX platform, stands at around $1.10. This reflects an approximate 32% increase over the last day. CoinGecko’s statistics illustrate a significant surge in daily trading activity, rising from about $10.4 million to almost $59 million.

While FTT previously offered benefits like reduced fees within the FTX ecosystem, its utility diminished considerably after FTX declared bankruptcy in November 2022. Despite this, the token remains a subject of speculative trading amid the ongoing bankruptcy proceedings.

Bankman-Fried, the founder and former chief executive officer of the now-defunct FTX exchange, is currently serving a 25-year prison sentence. His conviction stems from seven counts of fraud and conspiracy, relating to the misappropriation of billions of dollars in customer funds and the misleading of investors about the financial health of the exchange.

Prior to the recent “gm” post, Bankman-Fried engaged in a lengthy series of X posts. He shared thoughts regarding layoffs, difficulties faced within the company, and even issues encountered with government bureaucracy, reflecting on the challenges associated with employee dismissals and expressing concern for those affected by job losses.

A week later, he expressed gratitude to Tucker Carlson, the former Fox News personality, for conducting an interview with him while incarcerated.

Earlier on Tuesday, the FTX Recovery Trust initiated a lawsuit against Genesis Digital Assets, a firm specializing in Bitcoin mining, seeking the return of $1.1 billion. The core of the legal challenge rests on allegations of preferential payments received by Genesis Digital in the months leading up to FTX’s ultimate downfall.

This lawsuit occurs just before the estate’s planned creditor distribution on September 30, which aims to allocate around $1.6 billion to verified creditors.

Social Media Use from Prison

In April, Bankman-Fried was moved to the Federal Correctional Institution Terminal Island in Los Angeles, following a period of 18 months at the Metropolitan Detention Center located in Brooklyn, New York.

Based on the regulations set forth by the Bureau of Prisons, individuals incarcerated in federal facilities are permitted to use TRULINCS. This system is a secure messaging platform enabling text-based communication with approved contacts; it lacks support for file attachments. All communications through TRULINCS are subject to monitoring, and it does not offer unrestricted access to the internet.

The unauthorized possession or use of cellphones is strictly forbidden. Discovery of such items can lead to disciplinary measures, potentially including solitary confinement or the loss of “good conduct time.”

Some inmates attempt to circumvent these regulations by providing statements to their attorneys, who then post these messages on social media platforms.

Decrypt reached out to Sam Bankman-Fried’s legal representation at Shapiro Arato Bach LLP, along with representatives from the Federal Bureau of Prisons and FCI Terminal Island, to request comments pertaining to the “gm” post. As of the time of publication, no responses had been received.

Editor’s Note: This article has been updated to include further information regarding the individual responsible for the recent activity on SBF’s official account.