SBF admits responsibility for FTX failure in Twitter space but remains vague on details
FTX co-founder Sam-Bankman Fried gave vague answers to questions about mixing user funds, investing in The Block, and more. twitter space Sponsored by Autism Capital.
When asked about mismanagement of user funds, Sam replied that he had investigated everything that happened between November 6th and November 10th. However, his access to his data was cut off after he filed for bankruptcy.
“So I can’t go back and do the accounting now. I didn’t do the formal accounting until six days later,” Bankman said.
Despite his uncertainty about the numbers, he says he’s responsible for FTX’s failure.
“I was ultimately responsible in the sense that I was ultimately responsible.”
“I didn’t want to waste the time of 50 delegates.”
Coindesk’s deputy editor @0x_tracy asked why he didn’t want to speak to Congress after being interviewed by so many media outlets recently. Moreover, FTX co-founder said:
“I didn’t want to speak in Congress because I didn’t want to waste the time of 50 delegates.”
But @0x_tracy wasn’t satisfied with the answer.
“He basically said he didn’t mind wasting the public’s time, but he didn’t want to waste the time of 50 delegates.”
Bankman-Fried added that the paparazzi effect is making it difficult for him to move now and said he has no plans to speak at the upcoming Senate hearings. But if authorities feel it’s important, he makes sure he’s open to discussing it.
Earlier, the U.S. Senate Banking Committee ordered Sam Bankman-Fried to appear on Dec. 14 to investigate the failure of his cryptocurrency firm.
Answers to further questions
When asked if Tether ever lent money to Alameda, Sam said they had a normal working relationship.
Additionally, he admitted that he doesn’t know much about Moonstone and Silvergate, as he’s not someone who can provide “most details about FTX issuing tokenized shares.”
Sam has not confirmed whether Bahamian regulators forced FTX to open the withdrawal.
As to whether the user’s funds are properly allocated to the appropriate accounts, he confirmed otherwise.
The host asks Sam, “Were the user’s funds properly allocated to the correct accounts?”
Sam: “*Pause* I don’t know.”
Moderator: “It sounds like you’re saying no.”
Sam: “I think so.”
— Autism Capital 🧩 (@AutismCapital) December 12, 2022
Nonetheless, Bankman-Fried didn’t answer a final question about why it funded The Block media house.
A last-minute dilemma resulted in the FTX co-founder being criticized by a Twitter user:
Folks, I’ve been listening to this clown a lot over the last month and about this question @block__ What I heard pissed him off more than anything. Where there is smoke, there is fire. What other news outlets were making money????? pic.twitter.com/daYkKKMNRA
— Digital Asset Investor (@digitalassetbuy) December 12, 2022
On December 13, the U.S. House Financial Services Committee Hearing at SBFwith the former FTX CEO virtually in attendance.
