Sam Bankman-Fried Posts Apology, Says He Was Shocked By FTX : NPR
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Sam Bankman-Fried, now the most notorious figure in the cryptocurrency industry, claimed Wednesday that he “didn’t try to scam anyone.”
“I deeply apologize for what happened,” Bankman Fried, founder and current former CEO of crypto exchange FTX, said in a live interview in London. New York Times Dealbook Summit.
While the all-day summit included notable guests such as Treasury Secretary Janet Yellen, many wondered whether Bankman Freed, who promised to attend the event before FTX imploded, would show up. I was wondering.
Sure enough, he frequently portrayed himself as someone in the dark about the activities and status of FTX and his hedge fund, Alameda Research.
For over an hour, Bankman-Fried wore his signature t-shirt and spoke apologetically as interviewer and journalist Andrew Ross Sorkin read messages from FTX customers.
“I had a bad month,” the 30-year-old, a former darling of both Wall Street and Washington, elicited laughter from the audience. It’s the millions of customers that matter.”
Michael M. Santiago/Getty Images
The epic crash of FTX and dozens of affiliates scattered around the world was triggered by a tweet from Changpeng Zhao, CEO of another giant in the cryptocurrency industry, Binance, on Nov. 6, raising questions about the company’s solvency. I was. Within days his FTX collapsed, along with Bankman-Fried’s fortune and reputation.
“I thought it was a thriving and growing business,” he said in an interview. There are a few things I would like to do.”
Bankman-Fried emerged from the Bahamas, home of FTX, which is under investigation by Bahamian regulators. He was frequently asked about FTX’s relationship with Alameda Research, which owns much of FTX’s assets.
Bankman-Fried said he saw a “runaway start for banks” after a Nov. 6 tweet expressing concern about FTX’s stability and its relationship with Alameda, which saw about $4 billion a day. Said there was a withdrawal.
“I’m starting to get worried that FTX won’t be able to fill customer withdrawals…and I’m starting to think about emergency scenarios,” he said. I felt pretty good about it, and on November 7th, I was pretty nervous about it.”
In the early hours of November 11, Bankman-Fried resigned and the company filed for bankruptcy.
Screenshot by NPR
Throughout the interview, he denied having knowledge of key financial information, described himself as ignorant, and should have exercised more oversight and spent sufficient time researching risks. He said it wasn’t, and blamed others in the company.
While he’s hiding out in the Bahamas, Bankman-Fried has taken the rare step of campaigning in a glamorous campaign during a major TV interview scheduled for Thursday.
“The classic advice is, ‘Don’t say something falls into a hole,'” he said when Sorkin asked Bankman-Fried if his lawyers were okay in a Summit interview. rice field. .
“I have an obligation to speak up. I have an obligation to explain what happened. And I have an obligation to do everything I can to try to do the right thing.”
Treasury secretary says cryptocurrencies are having a ‘Lehman moment’
With BlockFi, another crypto company, going bankrupt earlier this week, many are not only asking what happened to FTX. They want to know if the end of cryptocurrencies is near and if there are risks to the greater financial system.
The volatile industry has caught Washington’s attention, and at the summit Yellen referred to the collapse of Lehman Brothers, which contributed to the global financial crisis 15 years ago, calling it a “‘Lehman moment’ in cryptocurrencies.” It is.
“Cryptocurrencies are big enough and have done quite a bit of damage to investors, especially those who are not fully informed about the risks they are undertaking, and that is very bad,” she said.
In her comments, Yellen again called on Congress to step up its oversight of cryptocurrencies, saying the industry “really needs proper regulation, but it doesn’t.”
open his case to the public
From the beginning it was clear Bankman-Fried wasn’t going to walk away quietly.
As his crypto empire began to crumble, he tried to explain himself on Twitter. “I failed and should have done better.”
Bankman-Fried’s tone changed after he relinquished control of FTX and the company filed for bankruptcy. However, he continued to tweet and began to argue with journalists again.
Bankman-Fried, in a startling article pulled from direct messages exchanged with Vox columnists, claims he’s still trying to raise money to revive FTX customers, and now has him in his sights. criticized the regulators who “F—regulators,” he wrote. “They make everything worse.”
That comment, and Bankman-Fried’s eagerness to make his case in the public square, prompted an official response from his successor at FTX, John J. Ray III.
“Mr Bankman-Fried, now in the Bahamas, continues to make irregular and misleading public statements,” he wrote in his bankruptcy filing. Ray said Bankman-Fried is no longer an FTX employee and does not represent the company.
A significant sum of money has been stolen or simply “disappeared”
Under Ray’s control, FTX commenced bankruptcy proceedings in Delaware.
The company estimates it has more than a million creditors and, according to one of its lawyers, “significant amounts of assets have been stolen or gone missing.”
“We have witnessed one of the most sudden and difficult collapses in corporate American history,” said James Bromley, a lawyer representing the firm.
https://www.npr.org/2022/11/30/1139984163/sam-bankman-fried-ftx-cnbc-dealbook-crypto Sam Bankman-Fried Posts Apology, Says He Was Shocked By FTX : NPR