Sam Bankman-Fried Maintains His Innocence Despite Allegations

  • Sam Bankman-Fried revealed that he suffered huge financial losses from the FTX saga.
  • SBF claimed his political donations were simply for publicity, as were his calls for crypto regulation.

Former CEO of the now-bankrupt cryptocurrency exchange, FTX, Sam Bankman-Fried, has once again apologized for the collapse of the crypto trading platform and attempted to distance himself from accusations of fraud. The 30-year-old made his first public appearance since the FTX collapse and admitted that he was in a bad financial place.

While speaking to the New York Times, Bankman-Fried said he had had a “bad month,” revealing that his lawyers advised him to stay silent but instead he chose to tell his side of the story. Amidst allegations of shady deals and mismanagement, the former FTX boss maintained his innocence, saying, “I didn’t ever try to commit fraud.” But crypto users believe otherwise.

According to two people familiar with the situation, Bankman-Fried discreetly transferred $10 billion of FTX customer funds to Alameda Research, causing a liquidity crisis at the exchange. The sources claimed that at least $1 billion in client funds had disappeared.

Bankman-Fried was once likened to a younger incarnation of the famous US investor Warren Buffet. As of late October, his net worth was believed to be more than $15 billion. However, things took a sour turn for the one-time billionaire in early November after traders withdrew $6 billion from the platform in three days and crypto exchange Binance aborted a bailout arrangement. On November 11, FTX filed for bankruptcy, and Bankman-Fried resigned as CEO.

FTX is currently going through a storm of inquiries in the Bahamas and the United States. According to sources, the Manhattan U.S. Attorney’s Office began looking into FTX’s handling of customer assets in mid November. Additionally, inquiries have been launched by the Securities and Exchange Commission and the Commodity Futures Trading Commission.

All For Publicity

Bankman-Fried has withdrawn himself from the impression he presented in media interviews and on Capitol Hill since FTX filed for bankruptcy. He recently claimed that his support for a crypto regulatory framework was simply a PR stunt, adding that his conversations on business ethics were a front.

The FTX founder gained prominence as a political donor in Washington, DC, and championed different causes, including improved crypto regulation. Speaking from the Bahamas, SBF claimed he was not worried about any legal or criminal responsibility. According to him, “There’s a time and a place for me to think about myself and my own future. I don’t think this is it.”

It remains to be seen how Bankman-Fried’s recent revelations will affect his current troubles with regulators and investors.

Lawrence Woriji Verified

Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.

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