The FTX Saga Comes Alive With A New Development

Nearly three years after its collapse, the FTX saga refuses to fade into the background. Just when it seemed the crypto world was preparing to close this turbulent chapter—with founder Sam Bankman-Fried’s appeal hearing looming in November—new twists have dragged the disgraced exchange back into headlines.

From courtroom battles involving former executives and their families to surprise market jolts triggered by SBF’s proxy social media posts, the ghost of FTX continues to haunt both investors and the broader crypto industry.

Ryan Salame, the former co-CEO of FTX Digital Markets, is currently serving a 7.5-year prison sentence after admitting in 2024 to using FTX-linked funds for illegal political campaign contributions. His plea deal was widely seen as closing one chapter of the sprawling case.

But the agreement has resurfaced in an unexpected way. Salame’s wife, Michelle Bond—a political candidate and financial sector figure—has asked the court to consider her testimony, arguing that her mindset and her husband’s motivations at the time of the plea are critical to her defense against charges of conspiracy and illegal campaign funding.

Federal prosecutors, however, swiftly rejected the request last Friday, ruling that Salame’s plea cannot be repurposed to lighten Bond’s case. For the prosecution, the two cases remain separate—and Bond must face her charges independently.

Creditors See Relief, But Shadows Linger

While the courtroom wrangling continues, FTX investors are experiencing partial redemption. The FTX Recovery Trust confirmed that creditors will receive another $1.6 billion payout on September 30, marking the third major round of repayments since February and raising the total returned to $7.8 billion.

For many small claimants, these repayments mean more than 100% recovery of their original losses—a rare bright spot in one of the largest collapses in crypto history. Yet the optimism is tempered by the reality that the legal side of the scandal is still unfolding. Every new plea battle or hearing drags the case back into public view, keeping wounds fresh for those still awaiting closure.

Adding an almost surreal twist, Sam Bankman-Fried’s dormant X (formerly Twitter) account suddenly posted a simple “gm” this week. The two-letter greeting—later clarified as being written by a friend on his behalf—was enough to send FTT, the defunct token of the failed exchange, soaring 32% in a single day, with trading volume skyrocketing from $10.4 million to nearly $59 million.

Despite FTT having no functional utility since FTX’s bankruptcy in 2022, the reaction showed how easily speculation can be reignited—even by a convicted founder serving a 25-year prison sentence. Federal inmates like SBF are prohibited from social media access, underscoring that even proxy posts can create outsized market ripples.

The Saga That Refuses to End

The convergence of these events—the Salame-Bond plea fight, billion-dollar creditor repayments, and SBF’s social media “resurrection”—underscores one uncomfortable truth: FTX is far from finished haunting crypto.

On one side, investors are beginning to recover funds, in some cases with surprising gains. On the other, the reputational scars and ongoing legal disputes ensure the scandal remains a living memory, not a closed case. The fact that a single tweet can still pump a worthless token shows just how much the industry remains tethered to the chaos of its past.

For the crypto sector to truly move forward, it must learn from FTX’s downfall rather than continue to relive it as spectacle. Otherwise, the cycle of hype, collapse, and courtroom drama will keep repeating—leaving investors vulnerable and innovation overshadowed by scandal.

The end of one chapter, as the FTX saga proves again and again, rarely marks the conclusion of the story.