Sam Bankman-Fried, the main person in the crash of the crypto exchange FTX, recently appeared before the public. This is the earliest public presence of the FTX Founder since the start of the collapse. He told the New York public that he never intended to do fraud. On Wednesday, FTX exchange’s 30-year-old founder showed up at the Dealbook Summit of the New York Times for an interview. Earlier, Turkey started a formal investigation into the FTX scandal.
Sam Bankman-Fried Disproves the Accusations of Doing a Fraud
The interview was with Andrew Ross Sorkin (a journalist) regarding the background of the FTX saga. They discussed the causes which compelled the crypto exchange to become bankrupt formerly this month. The company, which once had a worth of nearly US$32B, filed for bankruptcy on the 11th of November 2022. This was witnessed after a few days of severe tumult at the point when it was attempting to resolve a liquidity crisis by joining its rival. The crypto winter is far from over and it has recently consumed BlockFi as well.
Nonetheless, the respective contract fell apart resulting in extraction of up to $6B worth of funds on behalf of traders. The bankruptcy filings of the firm indicate that it owes approximately $10B to diverse creditors as well as a minimum amount of $1B in consumer deposits is missing. One among many accusations is that the consumer deposits at the crypto exchange seem to have been utilized in the form of capital as well as collateral for Alameda. Alameda is an investment company affiliated with Sam Bankman-Fried.
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This allegation points toward fraud while he resiliently refuted having participated in such actions. He stated that he never intended to carry out fraud. Bankman-Fried added that he did not manipulate funds knowingly. Though he admitted having made mistakes, the FTX founder refuted frequent attempts to label the events on the platform as illegitimate or malicious. The issue has even started to drag the new CEO of FTX as well into the mud after the Bahamian authorities accused him of distortion.
FTX Founder Apologizes for Mishaps Leading to the Fiasco
Bankman-Fried apologized for the whole episode and asserted that he was enthusiastic about FTX just a month back. The individual net worth of Bankman-Fried, which was above$26B a year before, evaporated during the crash. He brought to the front that the crypto exchange has sufficient funds to deliver to the consumers. Nonetheless, he specified that he has no say in this matter after leaving the official role of the firm’s CEO. He has been actively using Twitter since the crash began, but this interview counts as his initial appearance in front of the public.
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