FTX Co-Founder Blames Everyone for company’s Collapse Except Himself
2022.12.13 06:44
FTX Co-Founder Blames Everyone for company’s Collapse Except Himself
Budrigannews.com – Sam Bankman-Fried, also known as SBF, was arrested on December 12, one day before he was scheduled to testify remotely before Congress. Forbes obtained a copy of his testimony, which reveals that the disgraced CEO intended to assign blame for the spectral demise of his $32 billion empire to no one but himself.
In his testimony, SBF maintained the same rhetoric regarding FTX.US, the global cryptocurrency exchange’s sister company. Despite being a part of the Chapter 11 bankruptcy that was filed on November 11, he claimed that the company with its headquarters in the United States was still “fully solvent.” Fried, a banker, wrote:
“I wish I had not clicked on a button on Docusign at 4:30 am, leaving some of FTX under destructive leadership,”
He proceeded to fault the consideration of FTX.US in the Section 11 chapter 11 on John J. Beam III, a rebuilding legal counselor who expected the job of FTX President after the chapter 11 recording. “American customers were protected, at least until Mr. Ray’s team took over,” SBF claimed.
In contrast, Ray has been extremely critical of the former CEO of FTX and his management abilities. Ray testified at the FTX investigation hearing that he had never witnessed such a “utter failure of corporate controls at every level of an organization, from the lack of financial statements to a complete failure of any internal controls or governance whatsoever” in his years as a restructuring lawyer.
SBF also attributed the inclusion of FTX.US in Chapter 11 to the bankruptcy law firm Sullivan & Cromwell in the leaked document. While Bankman-Seared himself marked the insolvency records, he guaranteed the law office forced him to document Part 11 reports and composed:
“I have 19 pages of screenshots of Sullivan & Cromwell, Mr. Miller, and others I believe were influenced by them, all sent over a two-day period, pressuring me to quickly file for Chapter 11.”
SBF also targeted Ryne Miller, FTX.US’s general counsel, alleging that he belonged to a group that wanted to include the U.S.-based company in the bankruptcy filing.
SBF was going to blame Binance CEO Changpeng Zhao for what he claimed was “a month of sustained negative PR on FTX,” in addition to Ray and his legal aids. He asserted that Binance “never intended to go through with the deal” despite having knowingly signed the letter of intent to buy out FTX.
