Since Bankman-Fried has stepped down as CEO, FTX believes that none of his subsequent views or actions represents the company. Although the price of FTT has dropped by almost 95%, it seems alive as it refuses to drop below USD 1.5.
John Ray, the new CEO of FTX, recently said the company seeks to repair the damage caused by its collapse. The restructuring director of FTX took over after Sam Bankman-Fried resigned from his position.
Ray pointed out that Bankman-Fried no longer has ties to FTX, FTX.US, or Alameda Research. In addition, he commented that his opinions were personal and did not represent those of the company.
There Are No Links between FTX and Sam Bankman-Fried Anymore
The company, which is undergoing bankruptcy proceedings, said it is not responsible for comments made by Bankman-Fried. They highlighted that he must face the consequences of the information or value judgments he posts on Twitter.
When Sam Bankman-Fried resigned on November 11th, he stepped down from his position at the FTX group of companies. Therefore, any subsequent opinion or action by Sam Bankman-Fried would not represent the company.
FTX seems to react to several Bankman-Fried posts on Twitter, in which he comments on their current situation. He has said that he is trying to benefit affected FTX users.
Bankman-Fried has even said that he is working with regulators to ensure the interests of clients and investors. However, he posted those comments following his resignation from the FTX cryptocurrency exchange.
Therefore, FTX believes that Bankman-Fried cannot obtain any capital, financing, or bailouts on behalf of FTX. They warn that he would be subject to adverse legal consequences if he did.
Although Bankman-Fried has not clarified how he seeks to make up for his mistake, he said he did not expect anything in return. He told The New York Times that he was improvising it as he felt the time had not come yet.
The Price of FTT Struggles to Hold Support at USD 1.5
Amid bankruptcy proceedings, the price of FTT has dropped by almost 95% this month. However, the native token of FTX seems to remain alive, refusing to dip below USD 1.5.
FTT is trading at around USD 1.68 and has accumulated a 2.5% loss over the last 24 hours. While its daily trading volume is above USD 34.15 million, its market capitalization is about USD 587.0 million, according to CoinGecko.
Binance, the exchange with the highest FTT trading volume, closed its trading pairs except those with BUSD, its native stablecoin.
US regulators called Sam Bankman Fried and Changpeng Zhao to a hearing to explain what caused the FTX crash.
The collapse of FTX has led many regulators to tighten their measures against the crypto industry. In several countries, the authorities have suspended the cryptocurrency exchange as they investigate the case.
Since FTX is undergoing bankruptcy, investors should be cautious when buying FTT. It is a matter of time before seeing where the market will take the token.
By Alexander Salazar