Bankman-Fried Denies Trying to Commit Fraud at Fallen FTX Empire

(Bloomberg) — Sam Bankman-Fried, the disgraced founder of the bankrupt FTX crypto empire, denied trying to perpetrate a fraud while admitting to many errors at the helm of the company.

Most Read from Bloomberg

    “I made a lot of mistakes,” the 30-year-old said Wednesday by video link at the New York Times DealBook Summit. “There are things I would give anything to be able to do over again. I didn’t ever try to commit fraud on anyone.”

    He was speaking in an interview with Andrew Ross Sorkin, a columnist for the news organization, who said Bankman-Fried was joining from the Bahamas.

    bankman-fried denies trying to commit fraud at fallen ftx empire

    New York Times DealBook Summit Held In New York City

    Bankman-Fried’s participation has sparked controversy given the damaging fallout from the collapse of the FTX exchange and sister trading house Alameda Research. Among the outstanding questions are how Bahamas-based FTX ended up with an $8 billion hole in its balance sheet and whether it mishandled customer funds, amid reports that FTX lent client money to Alameda.

    Bankman-Fried told the summit that he “didn’t knowingly commingle funds.”

    ‘Nervous’ Over Conflicts

    At the same time, he said that FTX and Alameda were “substantially more” linked than intended and that he failed to pay attention to the trading house’s margin position, describing it as “too large.”

    He said he wasn’t running Alameda and added that we was “nervous about a conflict of interest.”

    Some observers speculate Bankman-Fried’s public comments could be used against him in litigation. The fallen former FTX chief executive faces a complex web of lawsuits and regulatory probes into alleged wrongdoing.

    The digital-asset sector is braced for widening contagion from FTX, which once boasted a $32 billion valuation before sliding into bankruptcy on Nov. 11. It owes its 50 biggest unsecured creditors a total of $3.1 billion and there may be more than a million creditors globally.

    Crypto Contagion

    A crypto lender, BlockFi Inc., filed for bankruptcy Monday after being buffeted by the wipeout. Embattled brokerage Genesis is striving to avoid the same fate.

    BlackRock Inc. Chief Executive Larry Fink said earlier at the DealBook summit that most crypto companies will probably fold in the wake of FTX’s collapse. The world’s biggest asset manager was among firms stung by the chaotic unraveling of Bankman-Fried’s tangled web of 100-plus FTX-related entities.

    Bankman-Fried has provided convoluted and incomplete explanations on social media and in interviews with other news outlets about what led to FTX’s woes. Advisers overseeing the ruins of his business have slammed non-existent oversight and the misuse of client funds.

    Poor Controls, Hack

    FTX’s new Chief Executive Officer John J. Ray III, a turnaround and restructuring expert, who formerly oversaw the liquidation of Enron Corp., told the bankruptcy court in the US that he’d never in his career “seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information.”

    As if such travails weren’t enough, the exact breakup of a $662 million outflow from FTX as it tumbled into bankruptcy remains a mystery. Bankman-Fried said in the summit interview that there was improper access to FTX after its spiral.

    Treasury Secretary Janet Yellen, another speaker at the summit in New York, called the FTX debacle “the Lehman moment within crypto,” referring to the collapse of investment-banking giant Lehman Brothers in 2008.

    Crypto markets have stabilized somewhat after lurching lower in November as the turmoil around FTX thickened. Even so, a gauge of the top 100 tokens is down more than 60% this year, hit by tightening monetary policy and a series of crypto blowups of which FTX is the most spectacular.

    Read more about Bankman-Fried and FTX:

    FTX’s Bankman-Fried to Face a Public Still Seeking AnswersBankman-Fried Says Collateral Crashed by $51 Billion as FTX FellBankrupt FTX Hit by Mysterious Outflow of About $662 Million

    –With assistance from Allyson Versprille, Jenny Surane, Gregory Korte and Annie Massa.

    (Updates with more comments from Bankman-Fried from the fifth paragraph.)

    Most Read from Bloomberg Businessweek

      ©2022 Bloomberg L.P.

      News Related

      OTHER NEWS

      Letters to the Editor: Just like other Americans, Asians can be sports stars and mass killers

      To the editor: In recent issues of The Times, the newspaper has inadvertently introduced the broader community to the diverse (ethnically and socioeconomically) Asian American community. (“In Monterey Park and ... Read more »

      Wanna bet? Texas Legislature to reconsider legalizing casinos and sports betting

      Given the stiff headwinds to getting any expansion in gambling passed, sports betting and casino advocates may be competing against each other, rather than working in tandem. Read more »

      Commentary: Why are school districts still using dress codes to discriminate against girls?

      A few months ago, someone scrawled this provocative message on the wall of a girls’ bathroom stall at a high school in Corona: “I can get sent home for a ... Read more »

      Column: Will 19 dead in California alter the balance between your right to a gun and my right to live?

      Individualism has been a defining and admirable American trait throughout this nation’s history on a vast, varied continent. But so has its opposite: communitarianism, collectivism — a focus on the ... Read more »

      School librarians vilified as the ‘arm of Satan’ in book-banning wars

      In her time as a Texas school librarian, Carolyn Foote watched the image of her profession veer from “shrinking violets behind spectacles” cataloging titles to “pedophiles and groomers” out to ... Read more »

      Op-Ed: The ‘deaths of despair’ narrative focused on white men. Whom did it leave out?

      In 2015, two economists introduced a social theory that would become one of the most famous of the era: deaths of despair. They speculated that rising rates of deaths among ... Read more »

      Letters to the Editor: Dangerous driving is everywhere. Are red-light cameras a solution?

      To the editor: My daily bicycle commute includes crossing one busy road at a signal. As I wait for the green, my hobby is to guess whether someone will run ... Read more »

      Here's How Much Warren Buffett Has Earned From Coca-Cola's Dividend

      Here’s How Much Warren Buffett Has Earned From Coca-Cola’s Dividend One of the more notable investments in acclaimed investor Warren Buffett’s career was Coca-Cola (NYSE: KO). Buffett is a longtime ... Read more »

      Radioactive Capsule Goes Missing After Falling Off a Truck

      Caspar Benson/Getty A major public health warning was issued in Australia on Friday after a radioactive capsule apparently fell off a truck while in transit. The tiny radioactive gauge—which is ... Read more »

      Mexico finds 57 adolescent migrants crammed into a truck near the U.S. border

      MEXICO CITY —  Mexican immigration authorities said they found 57 Guatemalan adolescents packed into a trailer on a highway near the U.S. border Thursday. The National Immigration Institute said the 43 ... Read more »

      Cowboys Coach McCarthy Reacts to Quinn, Kellen News

      Dallas Cowboys coach Mike McCarthy addresses the media on Thursday and Cowboys Country will update you as it happens. FRISCO – The Dallas Cowboys are at a crossroads of sorts ... Read more »

      Is It Too Late to Buy Nvidia Stock?

      Is It Too Late to Buy Nvidia Stock? Shares of Nvidia (NASDAQ: NVDA) have been in red-hot form over the past three months, with the chipmaker’s stock rising 50% as ... Read more »

      7 Reasons I Wouldn't Buy Tesla Stock With Free Money

      Over the trailing-10-year period, few S&P 500 components have delivered for shareholders quite like electric-vehicle (EV) manufacturer Tesla (NASDAQ: TSLA). Even after a pullback that’s seen Tesla stock lose close ... Read more »

      One Year As A Private Carrier: Air India’s Journey So Far

      One Year As A Private Carrier: Air India’s Journey So Far On January 27th, 2022, Air India ceased to be a state carrier and was handed over to the Tata ... Read more »

      Daily Horoscope For January 27, 2023

      Daily Horoscope For January 27, 2023 Bustle’s resident astrologer Mecca Woods, founder of My Life Created, shares every zodiac sign’s daily horoscope for today, January 27, 2023. The moon is ... Read more »

      Anthony Scaramucci says he bought Sam Bankman-Fried a suit for their Middle East fundraising tour and that the trip sparked FTX's downfall

      Sam Bankman-Fried and Anthony Scaramucci. Erika P. Rodriguez/Chicago Tribune/Tribune News Service via Getty Images; Chip Somodevilla/Getty Images Sam Bankman-Fried and Anthony Scaramucci went on a Middle East fundraising tour in ... Read more »

      True, there is no whisky in 'Fireball Cinnamon' products -- but there is alcohol

      According to the company, customers have to look closely to the labels. Read more »

      Texas appeals court delays Jerry Jones' paternity proceedings

      Jones' attorneys filed a writ of mandamus with the appeals court, essentially asking the higher court to overturn a judge's previous denial for delay. Read more »

      Texas death row inmates sue over 'brutal' solitary confinement practices

      The class action lawsuit was filed in Houston federal court on behalf of 182 male inmates on death row. Read more »

      Eric Bieniemy on Patrick Mahomes’ recovery: I want whatever he’s taking

      Eric Bieniemy on Patrick Mahomes’ recovery: I want whatever he’s taking Chiefs offensive coordinator Eric Bieniemy wishes he could bottle whatever it is that has allowed quarterback Patrick Mahomes to ... Read more »

      Biden’s Documents Drama Might Not Be Ending Anytime Soon

      (Bloomberg) — President Joe Biden’s expectations for a quick resolution of a probe into his mishandling of classified documents have been dashed, as a steady drip of new developments has ... Read more »

      Global shares edge higher, tracking Wall Street rally

      Global shares edge higher, tracking Wall Street rally Global shares have advanced, boosted by a rally on Wall Street following reports suggesting the economy and corporate profits may be doing ... Read more »

      Bear snapped 400 times posing for wildlife camera in 'selfie' style in Colorado

      The cameras are placed to enable staff in the wildlife park to learn about animals and give them space, while monitoring for anything of interest. Read more »

      Amy Ryan joins George Clooney and Brad Pitt in new thriller

      Amy Ryan joins George Clooney and Brad Pitt in new thriller Amy Ryan has joined George Clooney and Brad Pitt in a new Apple thriller. The 54-year-old actress has been ... Read more »

      Check your passwords! This site rates them based on security

      Check your passwords! This site rates them based on security How secure are your passwords? Tap or click here for 10 tips to secure your accounts with strong passwords. What ... Read more »

      Japan, Netherlands to Join US in Chip Controls on China

      The ASML Holding NV global headquarters in Veldhoven, Netherlands. (Bloomberg) — Japan and the Netherlands are poised to join the US in limiting China’s access to advanced semiconductor machinery, forging ... Read more »

      Fed Sees Soft Landing as Silver Lining of Temp Jobs Decline

      (Bloomberg) — The recent decline in temporary jobs — often a harbinger of recession — is actually raising hopes among Federal Reserve policymakers that their bid for a soft landing ... Read more »

      Marie Kondo says she's 'kind of given up' on tidying up her home

      Marie Kondo. Konmari Media Inc. Tidying guru Marie Kondo says she’s done with constantly keeping her house neat. Kondo said after three kids, she’s “kind of given up” on constantly ... Read more »

      A Mother Spent $1500 on her daughter's Sweet Sixteen Party, But The Daughter Said it Was ‘Cheap'

      A 45-year-old mom recently asked the internet for advice on how to deal with her so-called ‘entitled daughter.’ Photo Credit: Shutterstock. The daughters’ sweet sixteen was coming up, and she ... Read more »

      BREAKING: Gunman storms Azerbaijan’s Tehran embassy, kills head of security

      By Baku correspondent Cavid Aga BREAKING: Gunman storms Azerbaijan’s Tehran embassy, kills head of security The head of security at Azerbaijan’s embassy in Tehran was killed early on the morning ... Read more »

      I'm an HR executive that was just laid off from Vox Media. I've been preparing for this since my first day on the job.

      In the wake of Vox Media layoffs, Phoebe Gavin, 37, let her LinkedIn followers know that her job had been affected. But, she says that’s OK because she’d been preparing ... Read more »

      Are pre-workout supplements safe? (Plus, more of your questions answered)

      Gone are the days when the only question you got asked in the gym is what brand of whey protein are you taking? The world of sports supplements and athletic ... Read more »

      Philippines: Unapproved probe into killings unacceptable

      Philippines: Unapproved probe into killings unacceptable The Philippine justice secretary says any investigation violating the country’s sovereignty by the International Criminal Court into the widespread killings of suspects during an ... Read more »

      British Finance Minister Sticks to Tax-Hiking Plans, Pledges Post-Brexit Reforms

      British Finance Minister Jeremy Hunt on Friday signaled he is pushing ahead with tax hikes, while stressing the need to develop Brexit into a “catalyst” for U.K growth.— This is ... Read more »

      Jay Leno reportedly suffers broken bones in motorcycle accident months after garage fire

      Jay Leno is reportedly recovering from a motorcycle accident last week that left him with several broken bones just months after he sustained serious burns in a fire that broke ... Read more »

      DC man sentenced to 13 years in prison after killing a father in front of his 2 children

      DC man sentenced to 13 years in prison after killing a father in front of his 2 children A D.C. man was sentenced to a 13-year prison term on Thursday ... Read more »

      Rubik's Cube World Champion Shares Insight Into Success

      He is also an accomplished violinist Read more »

      Robbery spike in King County; Snoqualmie suspects possibly involved in crime spree

      Snoqualmie police say a violent robbery is now impacting the Snoqualmie Ridge community. Investigators believe the suspects are linked to other crimes – an attempted carjacking, and possibly other robberies ... Read more »

      Police investigating suspicious package found near Selland Arena in downtown Fresno

      An investigation is underway after a suspicious package was found in downtown Fresno on Thursday night. Fresno police confirmed the package was found around 7 pm outside the Selland Arena ... Read more »

      Rare Snake Born With 2 Heads and Duplicate Organs Forced To Be Euthanized

      A two-headed snake was taken to a local vet in Australia this week, amazing everyone who came into contact with it. As the egg of this unusual carpet python hatched, ... Read more »
      Kênh kiến thức kỹ năng, phát triển bản thân, hướng nghiệp, blog nhân sự