Invited by the New York Times, the deposed CEO Sam Bankman-Fried (SBF) of the FTX exchange answered questions live. SBF admits major mistakes, but defends itself from any wrongdoing.
He began the exercise at the New York Times DealBook Summit, where he was making an appearance on November 30.
SBF, I admit to mistakes!
That remains to be seen. SBF may face legal action. His public answers to questions may therefore be questionable. In fact, the former executive has not made any disclosures.
As on several previous occasions, he has acknowledged mistakes. Given the situation, SBF could hardly deny this. He confesses that he made major mistakes as CEO of FTX.
In particular, he believes that he should have placed more emphasis on risk management and consumer protection. SBF also admits that he overlooked the growing interdependence between FTX and Alameda Research.
But if the ex-billionaire readily admits to clumsiness and bad decisions, he refutes having committed any reprehensible acts. SBF assures us that he “never tried to commit a fraud”.
However, his sincerity has already been challenged. Is this the case again? When asked about past lies, Bankman-Fried was vague. Yes, he did market FTX and thus present the company favorably.
But he failed to mention the underlying risks, SBF concedes. Is that lying? It will be up to the courts to decide if a lawsuit leads the founder of the crypto exchange to explain himself.
Sam Bankman-Fried wants to defend himself from any fraud or personal enrichment. He whose capital was previously valued at $26 billion, says he now only has $100,000 in the bank.