Sam Bankman-Fried is also known as a crypto savior but when his own exchange which was co-founded by him, wasn’t able to save it. He runs the world’s largest crypto platform But as traders rushed to withdraw funds from FTX, Bankman-Fried was in denial and told investors he was convinced the business would be rescued, according to a source familiar with the situation. By Friday, FTX had filed for bankruptcy. He apologized, repeatedly.
As reported by Reuters Mr. Bankman-Fried known in financial circles by his initials, SBF, Bankman-Fried had become a prominent and unconventional figure in the industry. He sported his signature wild hair, t-shirts, and shorts on panel appearances with statesmen like former U.S. President Bill Clinton and former British Prime Minister Tony Blair, as well as supermodel Gisele Bundchen. Bankman-Fried also quickly became one of the largest Democratic donors in the United States, contributing $5.2 million to President Joe Biden’s 2020 campaign.
The crypto wunderkind started his career at Jane Street Capital, a choice he has said was influenced by a desire to make money to pursue his interest in effective altruism, a movement that encourages people to prioritize donations to charities.
Hubber protocol Marius Ciubotariu said, “Nobody was saying that anything was wrong with SBF The company’s collapse caught markets by surprise because Bankman-Fried was seen as a business-savvy founder adept at striking deals”.
BANKMAN-FRIED’S STATEMENT IN HIS EARLY DAYS
“I thought we would fail,” Bankman-Fried said at a June conference weeks before FTX and Alameda extended lifelines to two struggling crypto platforms. “I thought we would fail because no one would ever use it.”
Authorities initiated an investigation of FTX last year, examining whether the crypto giant’s trading and lending programs were properly registered with the SEC.
The SEC and CFTC are also probing connections between FTX International, FTX.US, and Alameda Research, FTX’s sister trading firm, said the people, who spoke on the condition of anonymity because the work is ongoing.
Cryptocurrency, after seeing a surge in popularity during the pandemic and drawing in millions of new investors, has faced a painful reckoning this year. Prices of bitcoin and other tokens have fallen precipitously, leading to a rush of clients trying to withdraw money. The value of bitcoin has fallen from roughly $68,000 a year ago to $17,000 now.
HIS TESTIMONY ON TWITTER
2) I’m really sorry, again, that we ended up here.— SBF (@SBF_FTX) November 11, 2022
Hopefully things can find a way to recover. Hopefully this can bring some amount of transparency, trust, and governance to them.
Ultimately hopefully it can be better for customers.
“I’m really sorry, again, that we ended up here. Hopefully, things can find a way to recover. Hopefully, this can bring some amount of transparency, trust, and governance to them. Ultimately, hopefully, it can be better for customers,” he tweeted.
As reported by The Economic Times According to a WSJ report, the Securities and Exchange Commission and the US Justice Department are investigating FTX.
The report added that staff at the two law-enforcement agencies were in close contact with the company’s lawyers.
The SEC’s investigation, which has been on for months now, deals with the company’s US subsidiary FTX.US, which lists dozens of crypto tokens. According to the report, agency officials believe some of these assets, as well as FTX’s lending product, might constitute securities that, under US law, should have been registered with the SEC before being sold to investors. If that’s the case, Bankman-Fried and FTX could see their legal woes multiply.