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3 Major Highlights from the former FTX boss Sam Bankman-Fried’s Interview at NYT DealBook Summit
Embattled FTX exchange former boss Sam Bankman-Fried (SBF) on Nov. 30 had an hour-long exclusive interview with New York Times journalist Andrew Sorkin at NYT DealBook summit. Three major remarks made by SBF were summarized below:
"I've had a bad month." Sam Bankman-Fried’s $32 billion cryptocurrency exchange, FTX, plunged into bankruptcy this month. He said his lawyers did not want him to talk, but he answered questions at The New York Times DealBook Summit. https://t.co/IKEPcphTDm pic.twitter.com/qYSSCEaDuO
— The New York Times (@nytimes) November 30, 2022
Commingling of Funds
In the course of the interview, SBF stated that he “unknowingly commingled funds” between his Alameda research and FTX. This means indiscriminately mixing customers’ funds deposited to FTX for transactions at its sister company Alameda research.
He confirmed that FTX indiscriminately loaned Alameda funds meant for customers despite the FTX’s terms of service, which states that customers’ digital assets are not property of the company.
Claim on Criminal liability
Reacting to Sorkin’s question whether he is worried about being charged for criminal liability or not, SBF asserted that he was not worried at all.
According to him,
“I don’t think that I personally have, you know [criminal liability] … but I think the real answer is that’s not what I’m focusing on.”
He further added that he is not bothered about his future for now, but his primary concern for now is how to help customers and stakeholders of FTX recover their funds.
SBF Views on Misleading the Public
SBF maintained that there was no personal intention of misleading the public. Recall that SBF revealed in a tweet that has now been deleted on Nov 6 that “FTX is fine. Assets are fine.”
The rebuttal was made following Binance’s CEO Changpeng Zhao claim that the exchange was battling insolvency.
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4
— CZ 🔶 Binance (@cz_binance) November 6, 2022
I It was no sooner than later that the whole bubble burst and the exchange could no longer hold. SBF asserted that he thought things would finally be stable unknowing it would degenerate.
Legal Reactions Trail SBF’s Remarks
Following some self-indicting remarks made by SBF, crypto attorney Jeremy Hogan, Partner at Horgan & Hogan stated that the brief granted by SBF has led to no fewer than three incriminating statements thus far.
SBF is getting a light cross-examination at the NYT/Dealbook Summit and has made at least 3 incriminating statements so far.
Why are his lawyers (or parents) letting him do this?? pic.twitter.com/Nd0poutAA0
— Jeremy Hogan (@attorneyjeremy1) November 30, 2022
In the same vein, Alan Rosca from the law firm Rosca Scarlato expressed shock over SBF’s statement, stressing that he was testifying at the DealBook summit.
SBF’s body language looks awful, imho. Interesting to think how a jury of his peers would see his truthfulness.
It’s pretty astonishing that he’s in effect testifying at the DealBook summit. Hard to think of a precedent for this. Just said his lawyers disagreed.#SBF #SBF_FTX pic.twitter.com/UWjLVXYDjF
— Alan Rosca (@alanrosca) November 30, 2022
It remains to be seen what will happen to SBF as the investigation into the bankrupt FTX exchange continues.
