Inside FTX Collapse: The True Feelings of SBF Revealed
Former FTX CEO Sam Bankman-Fried’s (SBF) leaked writings reveal feelings of distress and blame amid the largest crypto bankruptcy.
Former FTX CEO, Sam Bankman-Fried (SBF), now 31 and under house arrest, conveyed his feelings of destitution and the brunt of public disdain in 250 pages of writings. These documents emerged through a leak to Tiffany Fong, a notable crypto journalist and YouTuber. The New York Times, privy to these writings via Fong, shed light on some of the excerpts this week.
SBF currently faces a trial next month, with accusations ranging from wire fraud and money laundering to campaign finance law breaches and misappropriating customer assets. Additionally, the FTX collapse, which he is intimately linked to, stands as the largest bankruptcy in the crypto world. A massive 130 affiliated companies also went under with it.
He considered publicizing a series of tweets, expressing remorse over his perceived role in the downfall of FTX. In these, he voiced a belief that he may never overcome the negative impressions shadowing his reputation. Furthermore, key among his leaked writings, SBF suggests his ex-partner, Caroline Ellison, the former CEO of Alameda Research, played a significant role in the debacle. Moreover, he pins the blame on her for ignoring pressing risk management issues and feels their past relationship might have compounded the challenges.
Interestingly, SBF claims he wasn’t aware that Alameda was diverting customer money using a “fiat@” account until eavesdropping on an internal conversation in 2022. He strongly insists he never personally mishandled client funds.
The crypto community is closely watching this case. FTX’s downfall and SBF’s tussle with the law are among the most captivating events in the industry, drawing parallels with Ripple’s extended confrontation with the SEC.
FTX’s Financial Affairs and SBF’s Family Connection
Just this Tuesday, Judge Lewis A. Kaplan rejected SBF’s request for pretrial release. He emphasized that the allocated time for preparation was adequate. In another development, Judge John Dorsey greenlit FTX’s proposal to liquidate a vast amount of cryptocurrencies, including Solana, Ethereum, and Bitcoin. This move aims to generate $3.4 billion in assets.
Galaxy Digital, steered by Mike Novogratz, will supervise this massive sale. As per the initial framework, sales will limit at $100 million of tokens weekly. However, there’s a provision to double this amount for particular tokens if deemed necessary.
Bloomberg recently explored the role of SBF’s family in his meteoric rise. Moreover, his father, a recurring presence in pivotal FTX discussions, had been actively involved in meetings that revolved around FTX token promotions and tax-related deliberations.
SBF’s situation continues to grip the crypto sector. With the leaked writings revealing more about his sentiments and perspective on the entire FTX collapse, the industry awaits the upcoming trial. Therefore, as details continue to unfold, there’s no doubt that this case will remain a focal point for observers and stakeholders in the world of cryptocurrency.