Thursday, December 8, 2022
 

FTX CEO Sam Bankman-Fried Says Why His Bailouts Have Had Mixed Results

  • Sam Bankman-Fried talks about crypto bailouts.
  • He said the results of their attempts had been mixed.
  • He said that they were sometimes forced to make split-second decisions.

In an interview with Bloomberg, Sam Bankman-Fried, the CEO of the FTX cryptocurrency exchange and one of the wealthiest individuals in the crypto industry, recently gave an interview in which he said that his company’s rescue efforts inside the sector have thus far sometimes had disappointing results.

Bankman-Fried tells David Rubenstein, the interviewer, that not all of his company’s efforts to shore up failing crypto enterprises have been profitable, such as the money spent on troubled crypto brokerage Voyager Digital.

In his words:

“Mixed is basically the answer. I think some are going to turn out to be profitable, some won’t be. With Voyager, there’s $70 million that we put in, and I’m not sure we’re ever seeing it again.”

He went on to say that they were forced to make split-second decisions and that those decisions were made in such a way that, if everything went according to plan, they would be profitable investments.

However, even if things did not go as planned, they would still be considered poor investments since they would cap the amount of money we stood to lose as a result of the situation.

When the billionaire was queried about the source of the cash that FTX used to make the loans, he responded by saying that there were many distinct explanations for this. One of the pieces was the FTX balance sheet by itself.

FTX maintained their corporate cash reserves in dollars, and over the course of the last couple of years, they have successfully raised a number of billions of dollars. He further said, with self-assurance they run a successful business.

  • Sam Bankman-Fried talks about crypto bailouts.
  • He said the results of their attempts had been mixed.
  • He said that they were sometimes forced to make split-second decisions.

In an interview with Bloomberg, Sam Bankman-Fried, the CEO of the FTX cryptocurrency exchange and one of the wealthiest individuals in the crypto industry, recently gave an interview in which he said that his company’s rescue efforts inside the sector have thus far sometimes had disappointing results.

Bankman-Fried tells David Rubenstein, the interviewer, that not all of his company’s efforts to shore up failing crypto enterprises have been profitable, such as the money spent on troubled crypto brokerage Voyager Digital.

In his words:

“Mixed is basically the answer. I think some are going to turn out to be profitable, some won’t be. With Voyager, there’s $70 million that we put in, and I’m not sure we’re ever seeing it again.”

He went on to say that they were forced to make split-second decisions and that those decisions were made in such a way that, if everything went according to plan, they would be profitable investments.

However, even if things did not go as planned, they would still be considered poor investments since they would cap the amount of money we stood to lose as a result of the situation.

When the billionaire was queried about the source of the cash that FTX used to make the loans, he responded by saying that there were many distinct explanations for this. One of the pieces was the FTX balance sheet by itself.

FTX maintained their corporate cash reserves in dollars, and over the course of the last couple of years, they have successfully raised a number of billions of dollars. He further said, with self-assurance they run a successful business.

 

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