February 2, 2023

  • SBF wants to launch a new venture to repay money from investors
  • One source claims SBF lied about not knowing about Alameda’s use of cash

The founder and former CEO of the insolvent cryptocurrency exchange FTX expressed interest in starting a new business to recover the money he owes his clients. When questioned during a December 10 BBC interviewSam-Bankman Fried stated that he would start a new company to pay back FTX users.

The former CEO opined,

“I would give anything to do that. And I’m going to try if I can. I’m going to think about how we can help the world and if users haven’t gotten much in return, I’m going to think about what I can do for them. I think I at least have a duty to FTX users to do them the best I can.

According to the bankruptcy proceedings, Bankman-Fried had “more than 1 million creditors” as of November 14. The amount FTX may have lost was between $10 billion and $50 billion.

SBF and his views on the FTX debacle

During his apology tour of the media, Bankman-Fried reiterated previous statements that he “did not commit fraud on purpose. In addition, the former CEO did not believe he was dishonest. In addition, Bankman-Fried acknowledged that he was nowhere near as capable as he thought he was.

As of Dec. 12, the 30-year-old is subject to numerous federal investigations. These include SBF itself, the bankrupt exchange FTX and Alameda Research and around the improper handling of consumer deposits. Alameda’s investment portfolio also raised several questions about the whereabouts and rationale of everything that happened.

When SBF was questioned about possible jail time, SBF acknowledged thinking about it at night, but generally seemed unconcerned. In addition, no details of new business endeavors have been disclosed at this time.

In addition, the most recent multiple media appearances are several interviews. Further, SBF’s name was now formal including as a witness for the December 13 hearing entitled “Investigating the Collapse of FTX, Part I”. The second witness was none other than John Ray. Recall that John Ray is the new CEO of FTX, who was previously added on December 9.

A former FTX employee who spoke to the BBC also claimed that SBF had lied about knowing about Alameda’s use of cash. Bankman-Fried denied the charges, but acknowledged that, as CEO, she bore ultimate responsibility for any financial mismanagement.

If SBF doesn’t show up…

This week, SBF was asked to testify at two Senate hearings. However, US politicians argue that subpoenas are likely to be issued if he does not show up.

Sherrod Brown, the committee’s chairman, informed Bankman-Fried in a December 7 letter that he was prepared to “serve a subpoena to compel your testimony.”

Bankman-Fried missed the deadline, according to a statement dated Dec. 9 from Brown and Senator Pat Toomey, and the committee “will continue to work to bring him before Congress.”

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