On FTX collapse, former CEO Bankman-Fried

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on ftx collapse former ceo bankman fried
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Published on Nov 17, 2022 01:45 PM IST

The tweets, published at sporadic intervals, have combined apologies for former CEO’s failings with his perspective on what went wrong at the companies he founded and ran.

Samuel Bankman-Fried, founder and former CEO of FTX, testifies during a Senate Committee on Agriculture, Nutrition and Forestry hearing in Washington, DC.(AFP file)
Samuel Bankman-Fried, founder and former CEO of FTX, testifies during a Senate Committee on Agriculture, Nutrition and Forestry hearing in Washington, DC.(AFP file)

Bloomberg | | Posted by Nisha Anand

Confronted by a crypto crisis he helped spark, former FTX.com Chief Executive Officer Sam Bankman-Fried is tweeting through it.

On Wednesday, he added a further 18 tweets to a meandering thread he started at the beginning of the week. The posts, published at sporadic intervals, have combined apologies for his failings with his perspective on what went wrong at the companies he founded and ran. They add to a previous series of cryptic posts that eventually spelled out the message “What HAPPENED,” followed by a hint that there were revelations to come.

12) To the best of my knowledge, as of post-11/7, with the potential for errors:

a) Alameda had more assets than liabilities M2M (but not liquid!)

b) Alameda had margin position on FTX Intl

c) FTX US had enough to repay all customers

Not everyone necessarily agrees with this

— SBF (@SBF_FTX) November 15, 2022

With the wisdom of hindsight, he stated how he would do his best to save customers’ cash, mused on how hard it is to regulate the crypto sphere and boasted how he had been “on the cover of every magazine” before FTX’s meteoric crash. “We got overconfident and careless,” he said.

Also Read | Explained: What’s happening at bankrupt crypto exchange FTX?

It is unclear whether the tweets by Bankman-Fried, who is facing questioning by everyone from the Department of Justice to regulators in the Bahamas, will help or hinder his legal defense.

He concluded the most recent tweets in the thread with, “What matters is what you do–is *actually* doing good or bad, not just *talking* about doing good or *using ESG language*. Anyway — none of that matters now. What matters is doing the best I can. And doing everything I can for FTX’s customers.”

Also Read | FTX Japan studying whether local clients can get their crypto back

But he didn’t make clear exactly how he intends to help customers of the collapsed Bahamas-based crypto exchange, given he’s no longer CEO.

The backlash to the posts was swift, with FTX’s new management quick to distance themselves from him. The company posted a statement attributed to former Enron liquidator and new FTX CEO John J. Ray that read: “Mr. Bankman-Fried has no ongoing role at @FTX_Official, FTX US, or Alameda Research Ltd. and does not speak on their behalf.”

Others on crypto twitter were more cutting. “You’ll have plenty of time to sort this out in jail,” one user replied, while another made more detailed accusations: “You were reckless with customer funds,” they wrote. “Some lost everything. You should get zero sympathy, you’re like 30 years old. You belong in jail.”Bankman-Fried could not be immediately reached for comment.

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Satheendhar Sahani

Currently, I'm working on My own website (Latest For Me). I'm more interested in connecting with people, Talking, and Helping Each other, and it's helped me build my career more

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