While some of you might see the answer as obvious it's actually a pretty heated topic in the crypto space right now. Sam Bankman-Fried ( SBF ) had an interview hours ago at the Dealbook summit.
For those that missed his lies statements I'm gonna list them summarized here :
- - "I made a lot of mistakes, never tried to commit fraud"
- - U.S platforms is fully funded, I believe withdrawals could be opened today
- - FTX could have margin call positions, but it didn't do so, in massive failure of oversight
- - "i was not running Alameda, I didn't know the size of their position" at FTX
- - Position size of Alameda at FTX became larger over the course of 2022
- - FTX didn't had bank accounts globally in 2018-19 and relied on Alameda to receive client money and FTX credited clients
- - "I really knew there was a problem on Nov 6 " and "I started to become nervous FTX is not going to be able to fill costumers withdrawals"
- - "I was not really cautious enough from a downside perspective. I was looking at a 30% down move, Then what happened was a 95% down move"
- - Lawyers advise him not to speak but he says has a duty to talk, and he is not focusing on criminal liability atm.
- - By Nov 8 he was worried "there would be a substantial liquidity shortfall"
- - FTX US derivative contracts were fully collateralized
- - He is confused as to why FTX US is not processing withdrawals right now
- - Donations were mostly for the pandemic prevention rather than influencing the general elections
- - Re the property purchases by his family, they were meant to be for the company and were likely temporarily under his parents' name - Says " I screwed up" and "we messed up big"
- - Thinks FTX Japan is ALSO fully solvent
- - Admits/Claims FTX failed on risk, conflict of interest
- - Admits FTX had huge management failures
- - Admits there was no person in charge of position risk of customers
- - He doesn't think investors or staff bear responsibilities for FTX failures
- Claims there were no wild parties here at the mansion: "we would play board games" - "I want to be helpful wherever I can to regulators and administrators"
- - Claims he had "too many" board members at all the companies, contrary to many of the claims
- - Claims he only has 1 working credit card and $100k left in the bank
While most of them don't believe SBF there are actually popular names saying the opposite:
https://preview.redd.it/6r86f0b9g93a1.png?885&format=png&auto=webp&s=65a73f452cabc459c8bb6988655756871488541c
SBF responded to these tweets himself:
https://preview.redd.it/dd1moklhg93a1.png?889&format=png&auto=webp&s=99d176ef030891f5e7ccf6ae6c514ed1d5a8c0a1
But majority of the big crypto names strongly disagree:
https://preview.redd.it/4sinp22tg93a1.png?681&format=png&auto=webp&s=85a1193627b7b6d6fdb0020b29f0524082456638
https://preview.redd.it/hs3rmj3fh93a1.png?879&format=png&auto=webp&s=968edfd5b86e462e74fcee11c951f27d3d5b5e78
I personally think SBF messed up but made a lot of money for some big names ( which might be the reason why media treats him more neutral ). He lost billions of user funds and everyone who supports his comeback should always remember that. I doubt anything he said is true especially the "never tried to commit a fraud" part is ridiculous. If you manage funds no matter the size you are fully aware what you are allowed to do and what not. Gambling user funds without notifying is a massive red flag and you are fully aware of the fraud.
Comments