Sam Bankman-Fried, the founder and former CEO of now-bankrupt crypto exchange FTX, attempted to distance himself from suggestion of fraud in his first public appearance since his company’s collapse stunned investors and left creditors facing losses totaling billions of dollars.
Speaking at the New York Times’ Dealbook Summit with Andrew Ross Sorkin at what he said was against the advice of his lawyers, Bankman-Fried said that he did not knowingly commingle customer funds on FTX with funds at his proprietary trading firm, Alameda Research.
The liquidity crunch at FTX came after Bankman-Fried secretly moved $10 billion of FTX customer funds to Alameda Research, Reuters reported, citing two people familiar with the matter. At least $1 billion in customer funds had vanished, the people said.
Bankman-Fried told Reuters the company did not “secretly transfer” but rather misread its “confusing internal labeling.
FTX filed for bankruptcy and Bankman-Fried stepped down as chief executive on Nov. 11, after traders pulled $6 billion from the platform in three days and rival exchange Binance abandoned a rescue deal. (Read more from “Sam Bankman-Fried Says He’s Not to Blame for FTX Collapse: ‘Didn’t Ever Try to Commit Fraud'” HERE)
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