- Crypto detective riled up Bankman-Fried for a confession to fraud on Twitter Space.
- Bankman-Fried revealed that user assets became “fungible” during the collapse.
- Coffeezilla informed that “the withdrawals weren’t segregated. SBF conned everyone.”
YouTube investigator Stephen ‘Coffeezilla’ Findeisen claimed that he got the fraudulent FTX CEO Sam Bankman-Fried to confess to fraud in a recent Twitter Spaces interview.
Coffeezilla was the most critical and vocal about Sam Bankman-Fried handling the situation, despite saying he wanted to help his users.
On YouTube, the crypto detective has slammed several “scams”, and now Bankman-Fried has been on his radar.
In his third attempt, the YouTuber believes he finally got the FTX founder to admit “fraud” in a public Twitter Space.
According to the FTX CEO, some of the funds were lost in the Alameda wire transfers before the exchange had a bank. When Coffeezilla asked about everyone else’s assets, Bankman-Fried replied, “some of the assets might still be at FTX.”
This is fraud. Sam says “At the time, we wanted to treat customers equally” now that Sam admitted they were co-mingling funds for withdrawals, he started getting defensive.
FTX CEO granted broad withdrawals, claiming, “I didn’t make a decision, we processed withdrawals as we normally do”. Assets from several buckets were “fungible”. Coffeezilla stated that this “co-mingling” of funds amounted to fraud.
The detective further asked Bankman-Fried, “if he can guarantee these assets are backed 1:1… he hesitates”. To which FTX CEO revealed: “During the crash, the withdrawals were not limited. The money was “fungible”.
Coffeezilla revealed that “the withdrawals weren’t segregated as promised, they literally were in a huge pot of money, first-come-first-serve. SBF conned everyone.”
Due to uncertainty on what funds were part of the exchange FTX or other initiatives, such as trading firm Alameda Research, it was “first come, first served” for whatever money was left, leaving some users completely in the dark.
It is unknown whether Bankman-Fried has been criminally charged with anything regarding FTX, but experts believe he may have violated securities, bank, and wire fraud laws.
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