‘I did not at any time try to commit fraud on any one,’ previous FTX CEO Sam Bankman-Fried claims

‘I did not at any time try to commit fraud on any one,’ previous FTX CEO Sam Bankman-Fried claims


Tom Williams | CQ-Roll Simply call, Inc. | Getty Visuals

Placing a contrite tone, former FTX CEO Sam Bankman-Fried claimed he “failed to do a good position” at upholding his obligations to regulators, shoppers, and investors in a hotly expected discussion with CNBC’s Andrew Ross Sorkin at the Dealbook Summit.

“I did not at any time try out to dedicate fraud on anyone,” Bankman-Fried explained. “I observed it as a thriving enterprise and I was shocked by what happened this thirty day period.”

Sorkin questioned Bankman-Fried why FTX and Bankman-Fried even had obtain to client dollars.

“I was not managing Alameda, I did not know just what was going on, I did not know the measurement of their placement,” Bankman-Fried stated. “A lot of these are issues I have uncovered above the past month [in the days leading up to bankruptcy.

Bankman-Fried appeared by video feed from the Bahamas, Sorkin said. Sorkin pressed Bankman-Fried on Alameda’s gambling on questionable cryptocurrencies, reading a letter out from an investor who lost his life savings of $2 million.

“The U.S. platform is fully solvent and funded,” Bankman-Fried said. “I believe withdrawals could be opened up today and be made whole.”

Bankman-Fried defended the fact that he was unaware of the Alameda exposure. In 2019, he said, 40% of FTX’s volume was from Alameda. By 2022, Bankman-Fried claimed, that number was down to 2%, which led him to believe that FTX’s exposure was lessened.

Sorkin continued to press Bankman-Fried on the lending of customer assets. Bankman-Fried demurred.

“In 2018, FTX didn’t have bank accounts,” Bankman-Fried said as justification for why users were asked to wire funds to an account in Alameda’s name instead of directly to FTX.

Rumors had flown since FTX’s November 11 implosion about whether Bankman-Fried would appear at the event. In a tweet last week, the former FTX CEO confirmed he’d sit down to talk with Sorkin.

Bankman-Fried’s FTX imploded in mid-November after Coindesk reported irregularities in FTX balance sheets. Since FTX filed for bankruptcy protection in Delaware on Nov. 11, Bankman-Fried has engaged with the media sporadically. “F*** regulators,” he told a Vox reporter in a Twitter message.

“I f***** up,” he wrote in another Tweet.

Semafor disclosed messages between Tesla CEO Elon Musk and Bankman-Fried, in which Musk invited the former crypto billionaire to roll over his $100 million stake in Twitter.

FTX was once hailed as the poster child of responsible crypto. Regulators and lawmakers looked to Bankman-Fried as the future of crypto regulation, a reputation that Bankman-Fried cultivated through appearances before Congress and deepened through generous political contributions.

Bankman-Fried was already known as one of the largest donors to Democratic candidates. He claimed in a recent interview that he gave equally generously to Republican causes, through so-called “dark pool” contributions.

Reporters, Bankman-Fried said, “freak the f*** out if you donate to Republicans.”

This is a developing story. Please check back for updates.



Source

Tesla’s European car sales nosedive for fifth month as customers switch to Chinese EVs
World

Tesla’s European car sales nosedive for fifth month as customers switch to Chinese EVs

A group of activists criticizing Elon Musk and Tesla’s policies hold a protest outside a Tesla dealership in London’s Park Royal district, on April 12, 2025 in United Kingdom. Anadolu | Anadolu | Getty Images Tesla new car sales in Europe fell for a fifth straight month in May, according to data from the European […]

Read More
CNBC’s The China Connection newsletter: Whispers of a new world order in Tianjin
World

CNBC’s The China Connection newsletter: Whispers of a new world order in Tianjin

The 2025 Summer Davos forum will be held from June 24 to 26 in Tianjin and is expected to bring together around 1,800 participants from over 90 countries and regions. China News Service | China News Service | Getty Images This report is from CNBC’s The China Connection newsletter, which brings you insights and analysis […]

Read More
‘Time to get serious on defense’: A moment of truth for NATO as leaders seek unity on spending hike
World

European defense stocks jump 1% as world leaders meet for NATO summit

Defense stocks jump HMS Venturer is rolled out from the build hall at Babcock Rosyth on May 27, 2025, in Rosyth, Scotland. Jeff J Mitchell | Getty Images European defense stocks rallied on Wednesday morning, as world leaders gather in The Hague, Netherlands, for the annual NATO summit. The military alliance’s 32 member states, with […]

Read More