- SBF denies FTX bankruptcy, calling it a liquidity crisis that hindered fund access.
- Bankman-Fried criticizes the legal system and political struggles affecting his trial.
- Despite financial loss, SBF focuses on effective altruism and supports global causes.
Sam Bankman-Fried (SBF), the former head of the defunct-FTX exchange, has offered his take on the company’s downfall in a recent prison interview. SBF firmly denied that FTX went bankrupt, instead calling it a liquidity crisis.
He argued that FTX possessed sufficient assets to repay all customers, but market panic, fueled by the liquidity issue, hindered their ability to quickly access the necessary funds.
Bankman-Fried made it clear that FTX was never insolvent. He maintained that the company had enough assets to cover all customer holdings. He explained that the liquidity crisis that erupted created significant hurdles. SBF stated:
“We had enough assets to pay back all customer funds. The issue was that the market panic caused by the liquidity crisis made it impossible to quickly access the funds.”
This crisis ultimately resulted in a lengthy bankruptcy process, which Bankman-Fried criticized as unnecessarily delaying the return of funds to customers. He also faulted the bankruptcy trustee for how they handled the situation, pointing out that initial asset estimates of $1 billion were later increased significantly to $15 billion.
Related: FTX Creditors to Be Repaid Starting Feb 18, but at 2022’s Rock-Bottom Prices
Legal System and Political Pressures
Bankman-Fried also spoke about the ongoing legal battles and the political climate surrounding his trial. He voiced concerns about the fairness of the judicial system, specifically regarding rulings during his trial.
During the proceedings, Bankman-Fried also raised an issue, noting that the judge permitted the prosecution to assert that all investor funds were gone, while preventing the defense from challenging this assertion.
Trump vs. Biden Dynamics in SBF Case?
Shifting to the political background, he mentioned his prosecutor, Danielle Sassoon, and Judge Kaplan, both appointed by President Trump.
Bankman-Fried suggested that the political tensions between the Trump and Biden administrations had its impact on the trial.
Related: Bankman-Fried Seeks Trump Pardon, LayerZero Settles with FTX Estate
Wealth Loss, Lifestyle Unchanged, Altruism Focus
When questioned about his relationship with money, Bankman-Fried explained that even after losing much of his wealth, his lifestyle remained consistent.
He emphasized his dedication to effective altruism, mentioning that a large portion of his resources had been allocated to health initiatives, animal welfare, and pandemic prevention efforts.
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