crypto

Sam Bankman-Fried to New York Times – “I Wasn’t Running Alameda”

Although he admitted to oversight, the former CEO of FTX distanced himself from FTX’s sister company.
Key Takeaways: Sam Bankman-Fried, founder of FTX and former CEO, participated in a New York Times interview today.
He spoke about the events that led his company’s demise and his relationship to his employees.
He also discussed the possibility that customers could be made whole and FTX.US opening withdrawals.
Share this articleFormer FTX CEO Sam Bankman-Fried took part in an interview today with New York Times today during the publication’s DealBook Summit.On FTX’s Ties to AlamedaDuring the conversation, Bankman-Fried provided NYT interviewer Andrew Ross Sorkin with deeper insight into the collapse of his cryptocurrency exchange.Bankman-Fried began the interview by explaining that Alameda Research, FTX’s sister company, acted as a margin trading or derivatives platform.He said that Alameda had roughly 10% leverage last year, but that market crashes reduced the value of its assets. Alameda still had less than two times the leverage as of a month back, but Bankman-Fried stated that more than $10 million was lost in a matter days, leaving FTX unable generate the money owed. Bankman-Fried also said that he believed Alameda held margin positions with several crypto lending and borrowing firms. Alameda transferred those positions to FTX after many of those companies collapsed this summer. Bankman-Fried also admitted that there was a “substantial discrepancy” between financial audits and the actual situation of the company. He also suggested that FTX’s U.S.-based team had taken one portion of the funds and placed it in custody. Another portion was taken by Bahamian regulators. Bankman-Fried stated that the company had been given instructions to comply with regulatory requirements. Bankman-Fried, FTX CEO, also commented on his decision not to leave the Bahamas and whether he believes he can return to the U.S. to speak to representatives. Bankman-Fried stated that “what matters here is the millions and customers… I don’t think that what happens to me is the important part of that.” He also said that most of Alameda wasn’t there. “I don’t live there now, and I haven’t lived there for most the time.” I did live with Alameda members for a while.” Bankman-Fried also denied recreational drug use among employees. “There weren’t any wild parties here. When we had parties, we played board games,” he said, stating that some people drank a small amount of beer.He insisted that he saw no illegal drug use in the office or at parties but said that he personally used medications prescribed for focus and concentration.Bankman-Fried On His FutureBankman-Fried admitted that his lawyers have advised him not to talk to the public. He said that the classic advice is to not say anything, you’re better off hiding your truth.” He also admitted that he felt a duty “to talk to people and… to explain what happened.” He stated, “I believe there’s a chance customers could end up being made a lot better…if there were strong coordinated efforts.” There’s a chance for real value. Bankman-Fried said that he had “close enough” in terms of financial resources, with $100,000 million in personal funds and one credit card. He stated that he didn’t have any hidden funds. Bankman-Fried suggested several times that FTX’s U.S. office should be operational. He stated that the exchange is fully solvent and fully funded. “I believe that withdrawals could be opened up today.”Nevertheless, the exchange shows no sign of reopening its services to customers.Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other digital assets.Share this articleThe information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. does not provide investment advice. We do not provide personalized investment advice or any other financial advice. This website’s information is subject to change at any time. The information on this website could become obsolete or incorrect. You may not be able to update any information that is outdated, incomplete or inaccurate. We also reserve the right to change any information that is incorrect, incomplete or outdated. If you need investment advice about an ICO, IEO or other investment, we strongly recommend that you consult a licensed financial advisor or other qualified financial professional. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.See full terms and conditions.Recommended News