- FTX founder claimed he never expected FTX US would come under chapter 11.
- Bankman-Fried claimed to be under a lot of pressure from his advisors.
- This was revealed in the FTX founder’s last interview before his arrest.
Days before his arrest, FTX founder, Sam Bankman-Fried claimed that he never expected FTX US would come under chapter 11, and that this decision was “surprising” and “confusing”. In Bankman-Fried’s last interview before his arrest, the FTX founder revealed he was under a lot of pressure from his advisors.
Post FTX’s crash, the last interview of Bankman-Fried before his arrest was conducted by the Forbes Director of Research Digital Assets, Steven Ehrlich. The interview focused on events that had happened during the FTX crash.
Expressing the struggles, Bankman-Fried claimed that he often received bad advice from lawyers, though stating that he won’t specifically name them. When questioned about his parents, Bankman-Fried claimed that they have been really supportive during his crisis. Although after FTX’s demise both his parents, who were professors at Stanford Law, claimed they would no longer be teaching.
On Tuesday, the court testimony of the new CEO of FTX John Ray III was released to the public. During the ongoing investigation, Ray III claimed that throughout his career, he has never seen the failure of corporate controls and the absence of financial information.
Furthermore, Ray III explained that the collapse of FTX Groups arose from the mismanagement of funds by “inexperienced” individuals. This group of individuals failed to implement the effective controls required for an organization handling public funds.
Concurrently, Bankman-Fried was arrested on Monday at his apartment complex in the Bahamas. While Bankman-Fried was getting grilled by the US authorities and the Bahamas government, the Securities and Exchange Commission (SEC) joined in with authorized charges against the founder of FTX for violating securities laws.