Sam Bankman-Fried: “I never tried to commit fraud”

Former FTX CEO Sam Bankman-Fried (SBF) spoke at length about FTX’s collapse and bankruptcy at the New York Times Dealbrook Summit on Wednesday.

The former billionaire has defended himself against allegations of fraud and claimed that FTX’s problems were due to an accounting error.

Sam Bankman-Fried on the influence of Alameda

Bankman-Fried’s Interview seem By asking the former CEO if FTX really collapsed in an accounting error (ex claimed by SBF on Twitter) or if he has committed “massive fraud”.

“I have never tried to defraud anyone,” he said. “I was shocked by what happened this month.”

Sorkin read an SBF letter from a former FTX client who claimed to have lost $2 million in his life savings on the now defunct exchange. Like many, the client suspected that FTX had loaned his money to Alameda Research, his trading desk Deep relationships to FTX and Bankman-Fried.

Bankman-Fried explained that Alameda Research had more open leverage than he realized — particularly by using FTT tokens as collateral.

When the token crashed by 90% earlier in the month, dealing desk margin positions on FTX trading were liquidated, with “no realistic ability for FTX to liquidate that position.” FTX’s new post-bankruptcy CEO claimed that Alameda had been delisted from the exchange Auto filter engine, which has been applied to other companies.

When asked where FTX got the money to lend Alameda in the first place, Bankman-Fried claimed he “didn’t come up with the money on purpose.” Instead, he points to several oversight failures on his part regarding the size of Alameda’s trade.

Did SBF commit fraud?

Despite the SBF’s claims, Sorkin didn’t back down: He cited a report in the Wall Street Journal alleging that Alameda CEO Carloine Elison used FTX clients’ funds to cover margin calls at her firm, and that Bankman-Fried and FTX’s chief architect, Gary Wang, knew about it.

claim match Reuters’ November 15 report said Wang built a “backdoor” into FTX that allowed Bankman Fried to modify the company’s financial records for this purpose.

The SBF has not responded directly to this discrepancy, again pointing to the discrepancy between FTX’s audited financial statements and Alameda’s leverage “dashboard”.

He also claimed that FTX and Alameda have reduced their connections since 2019, with the latter accounting for only 2% of FTX’s volume by 2022.

Despite FTX’s woes, Bankman-Fried stressed that FTX US is not insolvent, and reiterated comments from an interview Tuesday when he said he would regret Files bankruptcy in the US branch.

“As far as I know, she is fully solvent,” he said. “I think withdrawals can be opened today and everyone can recover from it,” he said.

The interview ended abruptly after Bankman-Fried was asked about her company’s lack of a CFO.

Sam Bankman-Fried Post: “I Never Attempted To Commit Fraud” appeared first on CryptoPotato.

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