02 Dec 2022
Sam Bankman-Fried, the former CEO of FTX, disputes any “improper use” of client funds
The former CEO claimed FTX US was solvent when it filed for bankruptcy.
Sam Bankman-Fried, aka “SBF,” the former CEO of FTX, spoke with George Stephanopoulos in an interview that aired on Good Morning America on December 1.
SBF insisted throughout the interview that FTX was “a real business” and not a “Ponzi scheme.” FTX customer deposits allegedly used to pay off the debts of Alameda Research were also denied by the former CEO, despite allegations made by Caroline Ellison, the CEO of Alameda.
He claimed he was unaware of “any improper use of customer funds.”
Additionally, Bankman-Fried acknowledged that he did not put any time or effort into risk management on FTX.
"There is something maybe even deeply wrong there, which I wasn't even trying. Like, I wasn't spending any time or effort trying to manage risk on FTX and that was obviously a mistake."
“If I had been spending an hour a day thinking about risk management on FTX, I don't think that would have happened. And I don't feel good about that,” he added.
The former billionaire is said to have lost his fortune because of FTX's demise. He claimed that after an estimated $20 billion in net worth, he now only has $100,000 in his bank account and one ATM card.
Bankman-Fried stated that his current priorities are navigating the legal and regulatory systems while also “trying to focus on what I can do going forward to be helpful.”
After the interview aired, the former CEO used his Twitter account a few hours later to elaborate on remarks made in a different interview that aired live the previous evening on The New York Times' DealBook Summit on November 30.
In the tweet, the CEO insisted he was “fairly sure FTX US was solvent, and that all US customers could be made whole” even when the chapter 11 bankruptcy petition was filed.
He said that it is still in effect today, adding, “I'm not sure why US withdrawals were stopped.”
Sam Bankman-Fried described declaring Chapter 11 bankruptcy as his “biggest single fuckup” and expressed profound regret over it on November 16.
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