March 5, 2024


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Sam Bankman-Fried says not aware of improper use of funds in FTX downfall

Sam Bankman-Fried, founder of unsuccessful cryptocurrency exchange FTX, informed ABC Information that he “did not know that there [was] any poor use of customer funds” at his firm, amid speculation consumer deposits were utilized for investing by Alameda Exploration, FTX’s brokerage arm. 

See relevant article: Sam Bankman-Fried points blame for FTX collapse to Alameda, says he was blindsided

Quickly info

  • “I definitely, deeply desire that I experienced taken a whole lot far more obligation for comprehension what the details were of what was heading on,” Bankman-Fried explained to ABC Information in an article revealed on Thursday.
  • “I need to have been on prime of this, and I feel really, actually lousy and regretful that I was not. A lot of men and women received harm. And that’s on me,” Bankman-Fried stated.
  • Bankman-Fried tweeted on Thursday that when FTX submitted for Chapter 11 bankruptcy, he was guaranteed the U.S. unit FTX US was solvent. “To my awareness, it continue to is these days,” he wrote.
  • On Wednesday, he instructed the New York Situations DealBook Summit that he “didn’t knowingly commingle funds,” in reaction to allegations consumer funds at FTX were siphoned off and applied for crypto trading at Alameda Investigation.
  • FTX, formerly one particular of the world’s most significant buying and selling platforms for cryptocurrencies and valued at US$32 billion before this year, submitted for Chapter 11 bankruptcy defense on Nov. 11, along with Alameda and dozens of other affiliated firms.

See relevant report: Sam Bankman-Fried could facial area a long time in jail if convicted of regulation violations in FTX collapse, lawyers say