- Sam Bankman of FTX offered Elon Musk $3 billion to help acquire Twitter.
- The FTX CEO also proposed a blockchain integration for Twitter.
- Musk says SBF set off his “BS detector”.
Following a tweet that revived a series of text conversations Tesla CEO Elon Musk had with FTX’s controversial founder Sam Bankman-Fried, Musk responded on why he backed out of a partnership with Bankman-Fried by saying, “He set off my bs detector, which is why I did not think he had $3B.”
The Former CEO of crypto exchange FTX allegedly had a net worth of over $24 billion in March and $16 billion as recently as November 7. However, following the demise of his firms FTX and Alameda Research, he is no longer wealthy enough to be included in the Bloomberg Billionaires Index.
According to the reports, Bankman-Fried expressed interest in investing in Musk’s bid for Twitter back in March via their intermediaries. This information emerged in September when a legal proceeding revealed Musk’s text messages.
Michael Grimes, Musk’s banker at Morgan Stanley for the Twitter acquisition, reportedly informed Musk that SBF was willing to invest “at least $3 billion” to support Musk in buying Twitter. Musk had also questioned Grimes whether Sam actually had “$3B liquid” at the time.
However, that wasn’t the case, as recent events have shown, which led to Musk’s response about his “bs detector” setting off.
Bankman-Fried was also considering lending a hand in developing a Twitter-like application built on the blockchain. Even though Musk is an outspoken supporter of cryptocurrencies, he slammed this idea with a resounding “no” when he told Grimes, “Blockchain twitter isn’t possible.” He had agreed to meet SBF on the condition that he doesn’t “have to have a laborious blockchain debate.”
Musk also joined a Twitter Spaces call with other notable cryptocurrency community members the same day to discuss the FTX’s collapse. Talking about Bankman-Fried’s efforts to assist Musk with the $44 billion acquisition, he stated that he had doubts about the FTX founder’s capacity to provide funds for the deal.
Upon meeting Bankman-Fried, Musk admitted that he immediately sensed “something wrong.” “He does not have capital, and he will not come through. That was my prediction. And that was definitely what happened,” he added.
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