crypto’s most hated man makes stunning confession

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Sam Bankman-Fried, the controversial founder of FTX, shows his true colors. Suspected of embezzlement, the public enemy number 1 in the world of cryptocurrencies comes to light in an interview heavy with revelations.

Since the collapse of FTX, Sam Bankman-Fried has holed up in an apartment in the Bahamas. With the help of former employees, he contacts world-renowned investors by telephone to negotiate financing. The American businessman still hopes raise $8 billion to reimburse the million users harmed by the fall of FTX. So far, the process has not been successful.

At the same time, Sam Bankman-Fried, often called by his initials SBF, wrote a long enigmatic thread on Twitter to return to the circumstances of the fiasco. In public, the founder of FTX tries to defend, somehow, his image and justify his actions. In particular, he claims to have made several management errors through negligence and overconfidence.

For the record, the contractor is suspected of having embezzled client funds from FTX. He would have used the assets of the users to finance the activities of his companies, including the trading operations of Alameda Research. This mismanagement helped deter Binance from buying FTX, precipitating the death of the exchange.

Read also: Historic cryptocurrency crash – all the info live

Drop the masks

Against all odds, the fallen prince of cryptocurrency has contacted a Vox reporter on the night of November 15, 2022. Very lively, Sam Bankman-Fried chatted with the reporter through private messages on Twitter for more than an hour. For the first time, the former director of FTX reveals himself openly. Behind the mask of the philanthropist hides a deeply cynical individual. He openly admits that his declarations concerning ethics were only window dressing:

” All that stupid stuff I was saying… It’s not true, not really ».

So far, Sam Bankman-Fried has always presented himself as a follower of effective altruism. This philosophy recommends making targeted donations to improve the world. In the past, the entrepreneur has also multiplied social and ecological commitments. Above all, he is committed to the fight for animal welfare and against global warming. Additionally, SBF was one of Joe Biden’s largest campaign donors. FTX CEO paid out $5.2 million to help the Democrat block Donald Trump’s path. These investments were aimed solely at building his reputation as a philanthropist:

” That’s what reputations are based on to some extent. I feel bad for those who get fooled by this »explains Sam Bankman-Fried, disillusioned.

Since founding FTX in 2019, Sam Bankman-Fried has repeatedly staged his supposed simple and selfless way of life. Photos showing him asleep in a sleeping bag at his desk have been shared on the web. He also claimed to drive a simple Toyota Corolla, a car for less than 30,000 euros. Then a multi-billionaire, SBF felt he didn’t need a luxury car like a Lamborghini. All this was obviously just a vast communication operation.

Sam Bankman-Fried’s Biggest Mistake

In the wake of these confessions, the former crypto guru drew up an acerbic portrait of financial regulatorswhich seek to frame the ecosystem:

” There’s really no one there to make sure good things happen and bad things don’t happen. […] Just communication. Damn regulators. They make everything worse. They don’t protect customers at all ».

According to him, regulators cannot act effectively to protect people. This is not just the case for financial sector regulators, says SBF. In ” other areas that are regulated », like drugs and food, the regulatory authorities are useless in the eyes of the thirties. In the end, it all comes down to how much money you have:

” Only the rich can get started; only they can win or lose ».

Finally, Sam Bankman-Fried believes that his biggest mistake was not to embezzle funds from his clients or openly lie to investors. Against all odds, SBF assures us that its main error was to declare the bankruptcy of its companies :

” The one thing *everyone* told me to do. Everything would be about 70% fixed if I hadn’t […] If I hadn’t, withdrawals would resume in a month with customers fully refunded, but instead I filed for bankruptcy, and the people in charge are shamefully destroying everything. ».

Note that Sam Bankman-Fried has confirmed the veracity of the exchanges on Twitter. The former billionaire clarifies that ” the posts were not intended to become public ». He admits that part of the conversation was ” thoughtless ».

” And in the future, I will care less about the stupid frame, without funds, about the “good actor”. What matters is what you do – it’s *actually* doing good or bad, not just *talking* about doing good »says Sam Bankman-Fried.

FTX distances itself from its founder

In response, the new leaders of FTX officially distanced from Sam Bankman-Fried. John J. Ray III, the CEO of FTX in charge of the bankruptcy proceedings, wanted to disassociate the company from the words of its founder:

” As previously announced, Mr. Bankman-Fried resigned on November 11 from FTX, FTX US, of Alameda Research Ltd. and their directly and indirectly owned subsidiaries. Mr. Bankman-Fried has no ongoing role at FTXFTX US, Alameda Research Ltd and does not speak on their behalf ».

With this press release, the company, whose accounts are currently under the supervision of the American courts, definitively cuts ties with the former CEO.

Source :

Vox.com

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